Tribunal Orders Predeposit for Steel Companies in Ellen Industries Case

The tribunal directed M/s. Sri Amman Steels and M/s. Sri Meenakshi Steels, co-noticees in the case related to M/s. Ellen Industries, to predeposit 10% of the penalty amounts within four weeks. Failure to comply would result in the need to predeposit the balance amounts during the appeal proceedings. An adjournment request by M/s. Sri Meenakshi Steels was denied due to a connected appeal. The judgment was pronounced in open court, emphasizing the predeposit requirement for the appellants.

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Issues:
1. Predeposit of penalty amount by co-noticees.
2. Applicability of Rule 26(2)(i) and Rule 25 for penalty imposition.

Analysis:
1. The appeals in question arose from an impugned order related to M/s. Ellen Industries, where a predeposit of 50% of the duty amount was ordered. The co-noticees, M/s. Sri Amman Steels and M/s. Sri Meenakshi Steels, faced penalties for allegedly supplying invoices leading to inadmissible credit. The counsel for M/s. Sri Amman Steels argued that the alleged offence falls under Rule 26(2)(i), introduced post the relevant period of March 2005 to November 2006. He contended that Rule 25, inapplicable here, should not be used for penalties. Despite various contentions, M/s. Sri Amman Steels volunteered to predeposit 10% of the penalty amount within four weeks.

2. Regarding M/s. Sri Meenakshi Steels, an adjournment request was made, but it was denied due to a similar connected appeal with identical issues. The tribunal, after considering the submissions, directed both appellants to predeposit 10% of the penalty amounts within four weeks and report compliance by a specified date. Compliance with this directive would waive the predeposit of the balance amounts during the appeal proceedings. The judgment was dictated and pronounced in open court by the tribunal.

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