Shree Nakoda Ispat Ltd. vs Commissioner of Cus. and Central Excise

These are the two tax appeals against the order dated 22-1-2014 passed by the Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi (the Tribunal) partly dismissing the application of pre-deposit of Shree Nakoda Ispat Limited (the Assessee) and Shri Anant Dave (one of the Director of the Assessee) (Shri Dave).

The Facts

A search was conducted in the premises of M/s. Kailash Traders on 20-12-2006 in which certain incriminating documents were found. Thereafter, a search was conducted in the premises of M/s. Bajrang Transport.

Later on, a show cause notice was issued to the Assessee to show cause as to why the amount of excise duty and penalty mentioned in the show cause notice for clandestine removal of the goods for the period 2005-2006 to 2007-2008 be not imposed upon it.

A show cause notice under the Rule 26 of the Central Excise Rules, 2002 (the Rules) was also issued to Shri Dave and Shri Sanjay Goyal (Shri Goyal), who are the Directors of the Assessee to show cause as to why the penalty be not imposed upon them.

The Assessee as well as the Directors showed the cause. However, the Adjudicating Officer (the AO) by his order dated 5-12-2012 confirmed the notices and imposed the excise duty amounting to Rs. 1,08,98,927/- along with interest with penalty of the same amount as well as a sum of Rs. 20,00,000/- on Shri Dave and Shri Goyal.

Aggrieved by the aforesaid orders, all the three filed appeals. In the appeals, applications to waive pre-deposit were also filed. These applications were decided on 22-1-2014 with the following directions:

� The Assessee was required to deposit a sum of Rs. 70,00,000/- within a period of six weeks;

� Shri Dave was required to deposit a sum of Rs. 10,00,000/-; and

� The application of Shri Goyal was fully allowed and he was exempted from depositing the pre-deposit.

Hence, the present two tax appeals by the Assessee as well as by Shri Dave.

The Decision

We have heard counsel for the parties.

The Tribunal by its order dated 22-1-2014 has considered the prima facie case and thereafter, on the basis of the facts and circumstances of the case has ordered the Assessee and Shri Dave to deposit Rs. 70,00,000/- and Rs. 10,00,000/- respectively. There is no illegality in the same.

The counsel for the Assessee submits that there is a discrimination as the application of Shri Goyal has been fully allowed and the application of Shri Dave has been partly allowed.

The Tribunal has allowed the application of Shri Goyal on the basis that nothing brought to its notice about the active involvement of Shri Goyal, which is not the case so far as Shri Dave was concerned. There is justification for passing different orders. In view of above, the tax cases have no merit. They are dismissed. However, the appellants are granted two months'' time to deposit the amount.