2002 (1) TMI 726 - AT - Central Excise

Summary

Issues: Stay petition for deposit waiver due to financial hardship

Analysis:
The matter was brought before the Appellate Tribunal CEGAT, New Delhi for hearing the stay petition following the Order of the Honorable High Court of Delhi in a Civil Writ Petition. The applicant, represented by Shri Sugriva Dubey, sought a waiver of the requirement to deposit Rs. 1 lakh, as directed by the Tribunal previously, due to financial hardship. The applicant's factory had been closed since 1998, facing credit facility issues, pending recoveries, and legal disputes. On the other hand, the Respondent, represented by Shri R.D. Negi, opposed the waiver, highlighting the duty amount and penalty involved, the previous directions for deposit, and the lack of new material showing financial hardship from the applicant.

The Tribunal considered both parties' submissions and observed that the applicant had not provided substantial material to demonstrate financial hardship, apart from mentioning a recovery suit by a bank. The Tribunal noted that the bank's recovery suit did not necessarily indicate an inability to deposit the required amount. Additionally, the applicant had substantial pending recoveries from buyers. Consequently, the Tribunal decided not to waive the entire deposit but extended the time for depositing Rs. 1 lakh towards duty within four weeks. Upon compliance, the pre-deposit of the remaining duty amount and the penalty would be waived, and the entire amount would remain stayed during the appeal's pendency. The Tribunal set a date for compliance reporting.

In conclusion, the Tribunal's decision balanced the applicant's financial challenges with the need to ensure compliance with the deposit requirements, ultimately granting a partial waiver upon the deposit of a specified amount within a revised timeline.