Central Excise arrears - Sterlite Optical Technologies no favour shown - FM
The appellants are a large industrial house. The captains as someone would call them. If the captains and the marshals were to engage themselves in such fraudulent activities the corporals and soldiers would not be far behind. Had the appellants paid appropriate duty on the optical fibres and pre-forms at a time when such duty became payable the govt. coffers would have been that much fuller. The appellants did evade duty through subterfuge, careful planning and no small cunning. If there is any case which deserves a penalty under Section 11AC it is the appellants'
This is an extract from the order of the Tribunal in Sterlite Optical Technologies Ltd v Commissioner of Customs & Central Excise, Aurangabad -
The issue figured in the Lok Sabha yesterday when Mr. Mohan Singh made a special mention and said that he was not making any allegations but wanted clarity on the issue in the interest of preserving the dignity of the office of the Finance Minster.
The FM replied,
"Sir, I am happy that fortuitously I am present in this House when my distinguished friend raises this issue. Let me assure him that I hold no grievance against him because he did not make any allegation against me; he simply wanted facts and I am giving him the facts as best as I know.
There was an adjudication in the year 2003 by the Adjudicating Authority. Our Government came into office in May 2004. The company filed an appeal which was pending at that time. The appeal was defended by the Department when the UPA Government was in office and the Government succeeded in the appeal and order of adjudication was confirmed .(The Tribunal order referred above - DDT) Therefore, after the UPA Government was in office, no lenience has been shown to any one. The adjudication order has been confirmed by the appellate authority against which the company has filed a statutory appeal in the High Court of Bombay and the High Court of Bombay has granted a stay. Any number of companies, after adjudication by the Tribunal, go to the High Court by way of statutory appeal and obtain a stay. The Department has moved to the High Court to vacate the stay. The case was transferred to the Aurangabad Bench. The Aurangabad Bench, as you know, did not have, during that period, a regular Revenue Bench, and, therefore, the case was not heard for several months despite the efforts of the Department, Finally, the Department instructed its counsel to mention the matter to the Chief Justice of the High Court of Bombay. The matter was mentioned. The Chief Justice said: "File an application before me on the administrative side." An application has been filed.
The Chief Justice has heard the application. He has asked the other side to file a counter. The Chief Justice has assured us that the case would be taken up for disposal very early. It is completely wrong to say that the Minister has anything to do with recovery or non-recovery.
In fact, I have got a list of companies where there are arrears. There are over 20 companies with huge arrears. This is one of the companies. As I said, after our Government came into force, we have recovered more arrears than any Government before. I have given these figures in this House.
On this adjudication, we will contest the case strongly and we will instruct the senior counsel to appear in the matter. I am confident that the Government will win the matter in the High Court , and once the stay is vacated, the money will be recovered if the adjudication order is upheld. Please have no fear, no apprehension that any favour is being shown to anyone in this matter. "
FM means business!