ORDER
Jyoti Balasundaram, Member (J)
1. The application for waiver of pre-deposit of duty of Rs. 13,91,439/-and penalty of equal amount arises out of the order of the Commissioner of Central Excise(Appeals) who has dismissed the assessee’s appeal on the ground of non compliance with the direction for pre-deposit of Rs. 15 lakhs contained in his interim order dated 15.10.2003.
2. We have heard both sides. The duty demand has been confirmed as a result of holding that inputs, intermediate products and finished excisable goods (bulk drugs and chemicals) were cleared from the store department to P.D.Lab, R & D department, rejection outside the factory and branch transfer without reversal of appropriate modvat credit and without payment of duty. The extended period of limitation has been invoked on the ground of non disclosure by the applicants of such removal. The plea raised before us is that the stay order dated 15.10.03 was received by them only on 21.11.03, they applied for modification, the appeal was dismissed without considering the application and that too prior to the expiry of the time granted for pre-deposit viz. 15 days from the date of receipt of the stay order. The further plea is that duty is not payable as the goods removed to P.D.Lab and R&D department are eligible for modvat credit. They also plead that the extended period is not available to the department and hence seek waiver of pre-deposit and stay of recovery.
3. The prayer is opposed by the ld.D.R. who reiterates the findings of the Adjudicating Authority both on merits and time bar.
4. A careful consideration of the rival submissions leads us to the view that no strong prima facie case for total waiver has been made out in view of the clear finding on removal both within and outside the factory without payment of duty and without reversal of credit. The plea on limitation is also arguable in the face of the factual position that the applicants never informed the department about the removal of their goods. In these circumstances, we direct pre-deposit of Rs. 3,50,000/- (Rupees Three Lakhs and Fifty thousand) within a period of 8 weeks from today. On such deposit, pre-deposit of balance duty and penalty shall stand dispensed with and recovery thereof stayed, pending disposal of the appeal. Failure to comply with this direction shall result in Vacation of stay and dismissal of appeal, without prior notice.
5. Compliance to be reported on 2.7.04.
(Dictated in Court)