2008 (6) TMI 496

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.... against whom the adjudicating authority has confirmed demand of Rs. 1.13 crores imposed equivalent amount of penalty besides ordering for recovery of interest on the appropriate rate on the amount demanded. Other three stay applications are directed against the imposition of penalty of Rs. 5.0 lakhs on M/s. Sheetal Exports. Penalty of Rs. 7.0 lakhs on M/s. Karishma Overseas and penalty of Rs. 2.0 lakhs on M/s. Krishna Exports. 3. Since all these stay applications are arising out of a common order-in-original. They are being disposed by a common order. 4. The issue involved in this case is regarding the recovery of the demand of the duty on the Cenvat credit utilized by the main applicant M/s. Sofina Fashion to claim rebate ....

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....y one Mr. Chandubhai Patel of Surat and the applicant Mr. K. Das, is shown as a proprietor, was only a dummy. It is the submission that said Mr. K. Das of M/s. Sofina Fashion is an unemployed person and today is employed as a security guard in one of the security agency. He submits that since there is no question of confirmation of demand against the applicant, the condition of pre-deposit of the entire amount of duty and penalty should be waived. He also submits that the entire modus operandi was the brain work of Mr. Chandubhai Patel and he has enticed applicant Shri Kashinath Das, to do all these activities. The ld. Counsel appearing all other three applicants submit that they have not received the amount of rebate as claimed by them. It....

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....earing. We are of the view that the applicant has not made out a prima facie case for complete waiver of the condition of pre-deposit. Considering the fact that the applicant has an acute financial problem and also considering the submissions made by the ld. Counsel that the applicant is employed as security guard, we direct the applicant M/s. Sofina Fashion/Mr. K. Das to deposit an amount of Rs. 1,00,000/- (Rupees one lakh only) within 8 weeks from today and report compliance on 25th August, 2008. Subject to such compliance being reported, the condition of pre-deposit of the balance amounts involved in the case of M/s. Sofina Fashion/Mr. K. Das is waived and recovery thereof stayed till the disposal of the appeals. 8. As regards th....