2007 (7) TMI 467 - AT - Central Excise

Summary

Issues involved:
- Restoration of appeal dismissed for non-compliance of stay order directing pre-deposit.
- Consideration of delay in depositing the amount for restoration of appeal.
- Precedents set by previous judgments regarding restoration of appeals with delay in deposit.

Detailed Analysis:
The judgment dealt with the issue of restoration of an appeal that was dismissed due to non-compliance with a stay order requiring a pre-deposit of a specific amount. The appellant sought restoration after explaining the reasons for the delay in compliance, citing severe financial hardship as the primary factor. Despite the significant delay of 561 days, the appellants eventually deposited the entire duty amount along with a portion of the penalty amount. An affidavit was filed by the Managing Director to support their plea for recall of the order.

The learned Counsel argued that the appellants faced financial difficulties that prevented them from complying with the pre-deposit order initially. Reference was made to previous cases, such as Master Recording Co. v. CCE and West India Steel Co. Ltd. v. CCE, where delays in depositing amounts were condoned upon proper explanation. The Counsel highlighted that the Tribunal had previously restored appeals even when payments were made after several years, emphasizing the need for a fair consideration of the circumstances leading to the delay.

On the other hand, the learned JDR opposed the restoration application, citing the enormity of the delay as a reason to dismiss the plea. However, the Tribunal, after careful consideration, referred to the judgments in the cases of Master Recording Co., West India Steel Co. Ltd., and Sri Dhanalakshmi Cloth Dyeing & Printing Works to establish a precedent for recalling appeals despite delays in filing restoration applications. The Tribunal accepted the deposit made by the appellants and recalled the Final Order, restoring the appeal to its original number. The matter was scheduled for further hearing, with the Revenue barred from recovering interest until the appeal's final disposal.