Tribunal orders Rs.20.00 lakh deposit for waiver & stay on recovery. Failure may lead to dismissal. Allegations lacked evidence.

The Tribunal directed the applicant to deposit Rs.20.00 lakhs within eight weeks for waiver of balance dues and stay on recovery during appeals. Failure to comply would result in dismissal of appeals without notice. The Tribunal found the allegations narrow, focusing on SSI exemption misuse and clandestine removal, and lacked evidence linking the confiscated Indian Currency to duty evasion for 2003-2007.

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Issues:
Waiver of predeposit of total duty and penalties imposed under Rule 26 of the Central Excise Rules, 2002.

Analysis:
The case involved the waiver of predeposit of total duty of Rs.2.1 Crores and penalties imposed against the applicant and individuals. The applicant, engaged in manufacturing electrical items, availed SSI exemption. The contention was that two entities, M/s Mica Mold and M/s Mica Mold Pvt. Ltd., were independent units supplying to Indian Railways. The Department raised demands post-search, alleging M/s MMPL as a dummy company. The issue was the clubbing of clearances of both units for SSI exemption eligibility. The ld. Advocate argued against the confiscation of Indian Currency, citing lack of evidence linking it to duty evasion. The ld. A.R. for the Revenue supported the ld. Commissioner's findings on currency confiscation under the Customs Act. The Tribunal found the allegations narrow, focusing on SSI exemption misuse and clandestine removal. The ld. Commissioner had confiscated Indian Currency as proceeds of goods sold by M/s Mica Mold. Lack of evidence linking the currency to duty evasion for 2003-2007 led the Tribunal to direct M/s Mica Mold to deposit Rs.20.00 lakhs within eight weeks for waiver of balance dues and stay on recovery during appeals. Failure to comply would result in dismissal of appeals without notice.

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