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2005 (2) TMI 680 - AT - Central Excise
Issues: Appeal against disallowance of Modvat credit and penalty under Central Excise Act.
In this case, the issue revolved around the disallowance of Modvat credit and imposition of a penalty on the appellant. The Additional Commissioner disallowed Modvat credit amounting to Rs. 9,36,668/- and Rs. 87,655/-, and imposed a penalty of Rs. 10,24,323/- under Order-in-Original No. 49/03. The Commissioner (Appeals) directed compliance with Section 35F of the Central Excise Act by depositing the entire amount, including the penalty, within 15 days. The appellant filed an appeal without making the required deposit or seeking a waiver. The Tribunal noted that Section 35F mandates depositing duty demanded or penalty levied pending an appeal, unless undue hardship is proven. Since the appellants did not deposit the disallowed amount or penalty, nor applied for a waiver, the appeal was deemed not maintainable and dismissed. The Tribunal emphasized the importance of complying with Section 35F of the Central Excise Act, which requires depositing duty demanded or penalty levied pending an appeal, unless undue hardship is proven. The provision allows the Tribunal to dispense with the deposit in cases of undue hardship, subject to conditions. In this case, the appellants failed to show that the disallowed Modvat credit and penalty had been deposited or applied for a waiver. As a result, the appeal was dismissed for non-maintenance due to non-compliance with the statutory requirement of pre-deposit. The judgment highlights the procedural aspect of appeals under the Central Excise Act, specifically focusing on the requirement of depositing duty demanded or penalty levied pending an appeal, as per Section 35F. The Tribunal emphasized that failure to comply with this provision renders the appeal non-maintainable. The decision underscores the significance of following statutory procedures and fulfilling pre-deposit requirements before pursuing an appeal in excise matters to ensure the maintainability of the appeal and adherence to legal provisions.
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