R.K. Ispat Ltd. vs Commissioner of Central Excise

Ajay Kumar Mittal, J.—CM. Nos. 28109-CII of 2011 & 20468-CII of 2012; Allowed as prayed.

CM. No. 20469-CII of 2012

Annexures A-8 to A-11 filed along with the application are taken on record subject to all just exceptions.

CM stands disposed of accordingly.

CM. No. 28108-CII of 2011

CM is allowed and the delay in refiling the appeal is condoned.

CM. No. 28107-CII of 2011

This is an application for condonation of 850 days'' delay in filing the appeal.

It would be expedient to give facts in order to adjudicate the application for condonation of inordinate delay of 850 days'' in filing the appeal. The assessee was engaged in the business of manufacture and export of Nylon, Polyester/Blended Yarn. As per the notification dated 3-6-1997, the assessee could not import capital goods and raw material without payment of duty which was required to be utilized in the manufacture of goods meant for export. The assessee was to clear the goods in the domestic market on payment of duties. During the period from 27-7-2001 to 31-8-2004, the assessee in terms of the above provisions imported as well as domestically procured capital goods and raw material without payment of duty. During the period July, 2001 to 31-3-2005, the appellant imported goods and utilized the same in the manufacture of finished goods and exported finished goods as well as sold in the domestic market on payment of applicable duties. The respondent issued two show cause notices to the appellant demanding the duty amounting to Rs. 2,18,74,612/- along with interest. The said notices were duly replied by the appellant. The respondent vide order-in-original dated 31-5-2007 confirmed the said demand of Rs. 2,18,74,612/- and imposed penalty of Rs. 80 lacs holding that the Letter of Permission of the appellant was valid up to 31-12-2006. Feeling aggrieved, the appellant filed an appeal before the Tribunal. Along with the appeal, stay application was also filed. The Tribunal vide order dated 8-1-2008 directed the appellant to deposit Rs. 50 lacs for hearing of the appeal. On failure of the appellant to deposit a sum of Rs. 50 lacs as a pre-condition, the Tribunal vide order dated 15-4-2008 dismissed the appeal. Hence, the present appeal. After hearing the learned counsel for the appellant, we do not find any merit in the application for condonation of delay. There is a colossal delay of 850 days in filing the appeal. No satisfactory explanation has been furnished. The plea taken in the application for condonation of delay is that the appellant-company being a sick company was lying closed and all its employees had left. There was only one male Director who due to heavy losses could not file the appeal. The said Director was making efforts for revival of the company for which dispute with the Excise Department is required to be settled. The appeal has, therefore, been filed which is belated due to these unavoidable circumstances. Such an explanation does not fulfil the test of "sufficient cause" so as to entitle the appellant for condonation of huge delay of 850 days in filing the appeal. Accordingly, the application is dismissed. Consequently, the appeal also stands dismissed as barred by time.