- (1.) Heard finally with the consent of counsel for the parties. This Excise Appeal is directed against the order dated 15-7-2013 passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi (for short, 'CESTAT') whereby the CESTAT, while disposing of the application for stay filed by the appellants, directed the appellants to deposit an amount of Rs. 4 crores (Rupees four crores only) and also an amount of Rs. 10 lakhs (Rupees ten lakhs) within six weeks as a pre-deposit as against a total demand of Rs. 6,26,62,091/- + 6,26,62,091 + 50,00,000/- + 50,000/-, in total Rs. 13,03,74,182/- (Thirteen crores three lakhs seventy four thousands one hundred eighty two only), however, the respondent granted a credit of Rs. 7,32,368/-, being Cenvat credit and, therefore, the total outstanding remained at Rs. 12,96,41,817/- (Twelve crores ninety six lakhs forty one thousand eight hundred seventeen only) and it was further directed that if the appellants deposit the aforesaid amount of Rs. 4 crores & Rs. 10 lakhs, within six weeks then the balance of the disputed demand shall remain stayed till disposal of appeal.
(2.) Brief facts of the case, as emerging from the face of record, are that the appellants are engaged in manufacturing of M.S. Ingots classified under Chapter-72 of the Central Excise Tariff Act and registered with the Central Excise Department from the year 2004. They are using M.S. Scrap and Sponge Iron, which, after carrying out manufacturing process and deployment of labour, is converted into final product. On the basis of intelligence gathered by the Directorate General of Central Excise Intelligence, Jaipur that the assessee-appellant had indulged in large scale evasion of Central Excise, a search was carried out at the unit of the appellants on 23-12-2009 wherein a 'Panchnama' was drawn and incriminating documents were found and seized by the authorized officers. Simultaneous follow up searches were also carried at the raw material supplier, Dharamkanta owner, dealers, transporters etc. and it was noticed that the appellants were indulged in large scale evasion of Central Excise duty by way of clandestine production of excisable goods and removal of the same without payment of excise duty. A detailed show cause notice was issued to the appellants by the Addl. Director General on 15-2-2012 detailing therein the manner in which the respondent-department was on the basis of incriminating documents collected, and on the basis of statements of various persons and after collecting and analyzing the material came to the conclusion that the accused-appellant has been indulging in large scale evasion of excise, in the show cause notice each and every aspect was referred to by the Addl. Director General and the matter was forwarded to the Commissioner of Central Excise for final order. The Commissioner, who has jurisdiction to pass order in the instant case, also issued show cause notice to the appellant and after analyzing the material, was of the view that eight trucks were found parked in the premises owned by the appellants and on an enquiry one Shri Pawan Kumar Bansal presented purchase bills only in respect of six trucks and two trucks, bearing No. RJ14 2G 6644 and RJ14 2G 7271 were loaded with Kabari Scrap, weighing 17.09 MT and 28.55 MT respectively, which, according to the respondent-Commissioner, were procured from local markets without bills. The respondent-Commissioner has also referred to the statements recorded of Shri Pawan Kumar Bansal, Supervisor; Shri Gopal Singh, Labour Supervisor; Shri Sandeep Kumar, Chemist; Shri Krishna Kant Agrawal, Authorized Signatory of M/s. Jai Ambika Dharamkanta, Bagru, Jaipur; Shri Arun Kumar, General Manager and also of Shri Sanjay Kumar Agarwal, Director and several other persons. The material, so collected, was again confronted to the appellant and after analyzing the material on record, the Commissioner, in the aforesaid order dated 14-2-2013, confirmed u/sec. 11A(2) of the Central Excise Act that he (Commissioner) was able to prove that there was a strong case made out against the appellants of clandestinely clearing of 18947.704 MT of M.S. Ingots valued at Rs. 52,26,61,848/- (Fifty two crores twenty six lakhs sixty one thousand eight hundred forty eight only) and thus found that the appellants evaded Central Excise duty amounting to Rs. 6,26,62,091/- and held that the said amount is recoverable from the appellants by invoking the proviso to Section 11A(1)/11A(4) of the Central Excise Act, 1944. In addition to the said amount, penalty of like (equal) amount was also imposed and a further amount of Rs. 50 lakhs was imposed as penalty on Shri Sanjay Kumar Agarwal, Director and an amount of Rs. 50,000/- on Shri Arun Kumar, Manager. Thus, a total demand of Rs. 12,96,41,817/- (Twelve crores ninety six lakhs forty one thousand eight hundred seventeen only) was created.
(3.) Against the said order, the appellants preferred an appeal as also moved an application for waiver of pre-deposit of duty and penalty and grant of stay under Section 35F of the Central Excise Act before the CESTAT on 26-4-2013 and the order impugned, as referred to above, was passed by the CESTAT on the said stay application after hearing both the parties directing to deposit an amount of Rs. 4 crores + 10 lakhs as a pre-deposit and subject to deposit of the said amount the appeal would be heard on merits and balance of the disputed demand would be stayed till disposal of appeal by CESTAT.;