2006 (6) TMI 430 - AT - Central Excise

Stay/Dispensation of pre-deposit - Order of Appellate Tribunal - Appeal to Appellate Tribunal - Maintainability

Summary

Issues:
1. Demand of duty and penalty imposed on the assessee.
2. Dismissal of appeals by the lower appellate authority due to non-compliance with Section 35F of the Central Excise Act.
3. Consideration of waiver of pre-deposit and stay of recovery.
4. Reduction of pre-deposit amount by 50% due to financial hardships.
5. Setting aside of impugned orders for compliance with the direction.

Analysis:
1. The judgment addresses the demand of duty amounting to over Rs. 18 lakhs and a penalty of Rs. 4.5 lakhs imposed on the assessee for the period July, 2002 to April, 2004 due to the denial of SSI benefit in respect of branded goods.

2. The appeals filed by the assessee were dismissed by the lower appellate authority solely based on the non-compliance with Section 35F of the Central Excise Act, without delving into the merits of the case.

3. The possibility of waiver of pre-deposit and stay of recovery was considered by the Tribunal. The Tribunal noted that the appellants had a prima facie case before the lower appellate authority. The appellants argued for the waiver of pre-deposit and stay of recovery, citing the closure of their factory and financial hardships.

4. The Tribunal, after considering the submissions, reduced the pre-deposit amount by 50% to Rs. 2.5 lakhs due to the closure of the factory and financial difficulties faced by the appellants. The appellants were directed to deposit this reduced amount within 8 weeks to proceed with the disposal of their appeals on merits.

5. The impugned orders were set aside to allow the lower appellate authority to comply with the direction of reducing the pre-deposit amount. Appeals were allowed by way of remand for further proceedings. Additionally, appeals against interim orders of the lower appellate authority were dismissed as not maintainable in law.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the Tribunal's decision on each aspect of the case.