Javeri Polymers Limited Vs. Commissioner of Central Excise and - Court Judgment

Excerpt:
1. out of the total duty demanded of rs. 1,06,901/- and penalty imposed of rs. 1,29,836/- a sum of rs. 52,690/- has already been deposited.3. duty has been demanded on two grounds, that a consignment of polyethylene manufactured by the applicant was cleared without payment of duty, and that there is an unaccounted shortage of goods manufactured from the applicant's factory.4. i am unable, prima facie, to accept the contention of the representative of the applicant that there has been a demand for duty twice on one consignment which was cleared without payment of duty. if this were the case, the quantity seized would tally exactly with the quantity found short in the rg1 register. that is not so. the quantity found short in the rg1 register is 53542 bags whereas the quantity which was seized was 50000 bags. counsel for the applicant offer to deposit 50% of the remaining duty. however, i am unable to accept this offer. even if the counsel's contention is accepted, there is still a shortage of 3000 bags which he is unable to explain. having regard to these facts, i am of the view that the entire duty required to be deposited. on such duty being deposited within two months from today, i waive deposit of the penalty imposed and stay its recovery.

Judgment:
1. Out of the total duty demanded of Rs. 1,06,901/- and penalty imposed of Rs. 1,29,836/- a sum of Rs. 52,690/- has already been deposited.

3. Duty has been demanded on two grounds, that a consignment of polyethylene manufactured by the applicant was cleared without payment of duty, and that there is an unaccounted shortage of goods manufactured from the applicant's factory.

4. I am unable, prima facie, to accept the contention of the representative of the applicant that there has been a demand for duty twice on one consignment which was cleared without payment of duty. If this were the case, the quantity seized would tally exactly with the quantity found short in the RG1 register. That is not so. The quantity found short in the RG1 register is 53542 bags whereas the quantity which was seized was 50000 bags. Counsel for the applicant offer to deposit 50% of the remaining duty. However, I am unable to accept this offer. Even if the counsel's contention is accepted, there is still a shortage of 3000 bags which he is unable to explain. Having regard to these facts, I am of the view that the entire duty required to be deposited. On such duty being deposited within two months from today, I waive deposit of the penalty imposed and stay its recovery.