ORDER
G.N. Srinivasan, Member (J)
1.
An application for stay and waiver of payment of penalty of Rs. 12 lakh has been filed and posted for hearing today.
2. Fact of the case are that the applicants are engaged in the manufacture of man-mad fabrics and cotton fabrics falling under Chapters 52, 54 and 55 of the Central Excise Tariff Act. The applicants’ case fall within the purview of Rule 96 ZQ of the Cental Excise Rules read with section 3A of the Central Excise Act. It appears that for the month of April and May, 99 there was a delay for payment of duty by 4 days in respect of April, 1999 and 2 days in respect of May, 1999. The applicants plead before us that as far as April, 99 is concerned, the applicants were expecting certain money from the department towards abatement. The said sum did not get paid within the expected time. Therefore, there was some delay in payment of the duty. As far as May, 99 is concerned, the document available with the assessee in the form of letter written by the applicants’ advocate indicate that on 14.5.99, the amount has been credited with the bankers of the department viz. Bank of Maharashtra. Therefore, it is pleaded that there was no delay in making payment. The applicants, therefore, pleads before us for granting stay and waiver of payment of the amount.
3. We have considered the rival submissions made before us by the Id. advocate for the applicants as well as by the Id. departmental representative. The facts requires certain deeper study and consideration which will be done at the time of final disposal. However, for the purpose of hearing the appeal, we direct the applicants to deposit a sum of Rs. 50,000/-(Rupees fifty thousand) within one month from the date of receipt of this order. On such payment being made, there shall be waiver of payment of remaining sum of penalty and stay the recovery thereof.
4. Compliance on 21.8.2001.
(Dictated in Court)