Appellants directed to deposit Rs.1,00,000 for scrutiny of duty evasion in chakdo rickshaw sale

The Tribunal directed the appellants to deposit Rs.1,00,000 each within eight weeks for further scrutiny of their involvement in aiding duty evasion in the sale of chakdo rickshaws. The waiver of pre-deposit for the remaining penalties was granted, subject to compliance, with recovery stayed pending appeal disposal.

---

---

Issues: Stay petitions for waiver of pre-deposit of penalties under Rule 26 of Central Excise Rules, 2002

Analysis:
1. The appellants filed four stay petitions seeking the waiver of pre-deposit of penalties imposed on them under Rule 26 of the Central Excise Rules, 2002.

2. The penalties were imposed on the appellants for aiding and abetting the sale and purchase of chakdo rickshaws on which central excise duty was not paid.

3. The appellants, represented by their counsel, argued that they were only RTO agents and not involved in the purchase and sale of the chakdo rickshaws, citing their RTO agent registration and relevant forms.

4. The Departmental Representative (D.R.) contended that statements indicated the appellants were involved in collecting cash and dealing with the sale and purchase of duty-evaded chakdo rickshaws.

5. After hearing both sides, the Tribunal found that the appellants' role was not clear and required detailed examination based on the adjudicating authority's findings.

6. The adjudicating authority noted that the appellants collected cash over and above the invoice value, suggesting awareness of duty evasion by the manufacturers. However, the registration of chakdo rickshaws with the RTO based on manufacturer-provided documents indicated sales transactions.

7. Considering the need for further scrutiny, the Tribunal directed the appellants to each deposit Rs.1,00,000 within eight weeks and report compliance. The waiver of pre-deposit for the balance penalties was allowed subject to compliance, with recovery stayed pending appeal disposal.

---