2005 (9) TMI 428 - AT - Central Excise

Summary

Issues: Stay of impugned order and waiver of pre-deposit amount pending appeal.

Stay of Impugned Order:
The appellants sought a stay of the impugned order passed by the Commissioner of Central Excise (Appeals) and requested a waiver of the pre-deposit amount pending the appeal's disposal. The duty confirmed was Rs.7,28,221.29 with a penalty of Rs.1,00,000/-. The appellants had already made a pre-deposit of 50% of the duty amount confirmed before the Commissioner (Appeals). The appellants argued that the remaining 50% of the duty amount and penalty should be waived as is normally done. However, the JDR contended that the pre-deposit made before the Commissioner (Appeals) could not be considered, and further pre-deposit was required for the Tribunal hearing.

Waiver of Pre-Deposit Amount:
The Tribunal found the JDR's argument to be strange and unsustainable, emphasizing that the proceedings were continuous. The pre-deposit made by the appellants at one stage should be considered throughout the proceedings until finality. Therefore, for the purpose of Section 35F, it was determined that 50% of the pre-deposit made by the appellants would suffice, and further pre-deposit was deemed unwarranted. Consequently, in light of the facts and circumstances of the case, the Tribunal waived the requirement for further pre-deposit and stayed its recovery, thereby disposing of the application in favor of the appellants.

This judgment highlights the Tribunal's interpretation of the pre-deposit requirement in the context of appeal proceedings, ensuring that the ends of justice are met while considering the financial obligations of the appellants.