MANIYAR PLAST LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The applications for waiver of predeposit of duty and penalty arise out of the order of the Commissioner of Central Excise Nasik. Demands of Central Excise duty of Rs. 6,05,24,967/ - and Rs. 3,43,267/ - have been confirmed on Plastic Moulded Furniture and HDPE/PP Woven Sacks found short. The case of the department is that these have been clandestinely removed without payment of duty, Demand of Rs. 4,29,998/ - has been confirmed as an equal to modvat credit availed in respect of virgin raw material also found short. Penalties of amount equal to the duties above mentioned have also been imposed upon three different units of the applicant and there is also a penalty of Rs. 5 lakhs each on the Chairman and Managing Director and the Director of the company. Over and above this penalty of Rs. 2 lakhs has been imposed under Rule 209A of the Central Excise Rules ,on each of the three units of the applicant as well as penalty of Rs. 26,594/ - against the MIDC unit of the applicants.

(2.) None appears for the applicant in spite of notice, we find that the matter has came up more than one occasion earlier, hence we do not see any reason to keep the matter pending further. We have heard the Ld. DR and perused the records.

(3.) We find that the case has been made out on the basis of shortages and statements of the Director of the Company therefore a strong prima facie case for total waiver has not been made out by the applicant. The plea of financial hardship has been raised by the applicant by stating that they have been registered as a sick company by the BIFR, however the copy of the BIFR order is not on record and further the plea of hardship is not substantial by reference to documents such as balance sheet. Looking to the totality of the facts and circumstances we direct predeposit of Rs. 1 crore towards duty within a period of 12 weeks from the date of receipt of this order and on such deposit predeposit of balance duty and penalty shall stand waived and recovery thereof stayed pending the appeal. The appeals are liable to be dismissed for non compliance without further notice.