LUCKY STAR INDUSTRIES Vs. C.C., AMRITSAR

JUDGEMENT

(1.) By stay application, the applicant has sought for stay of the impugned order dt. 29.1.2001 passed by the Commissioner, Central Excise and Customs, Amritsar imposing a penalty of Rs. 3,00,000/ - on the appellant. Shri Bipin Garg, ld. Advocate for the appellants has contended that in the statements dt. 5.11.99 and 15.11.99, it has been fairly conceded that due to inadvertance they have forgotten to mention the auto (moped) parts. He has also contended that keeping in view the provisions of Section 114 (iii) of Customs Act, 1962, the penalty cannot exceed 5 times the amount of drawback claimed. In the present case it is seen from the show cause notice as well as the impugned order that the drawback amount claimed is Rs. 36,470/ - and if it is multiplied by 5, it comes to more than Rs.1,80,000/ -.

(2.) The ld. SDR, Shri A.K. Jain has reiterated the impugned order.

(3.) In view of the facts and circumstances, the applicant is directed to deposit Rs.50,000/ -(Rs. fifty thousand) within eight weeks from the date of receipt of this order. The balance amount of penalty will remain stayed during the pendency of the appeal. Compliance to be reported on or before 19.92001, the date fixed for regular hearing.