2007 (8) TMI 571 - AT - Central Excise

Summary

Issues Involved:
1. Waiver of pre-deposit of duty and penalty due to financial hardship faced by a charitable institution.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai, involved a case where the appellant, a charitable institution governed by the Bombay Public Trusts Act, 1950, was unable to pre-deposit the required amount due to financial hardship. The Tribunal considered the submission made by both sides and reviewed the appellant's financial situation. The Income and Expenditure account for the year ending 31-3-2005 showed a deficit of Rs. 3.84 crores carried forward to the balance sheet. The Tribunal acknowledged that the appeal's success was uncertain but recognized the grave financial hardship the charitable trust would face if directed to pre-deposit the amounts involved.

The Tribunal, taking into account the appellant's charitable nature and substantial financial loss, decided to waive the pre-deposit of the entire amounts of duty and penalty involved in the case. As a result, the recovery was stayed until the appeal's disposal. Additionally, the Tribunal noted that several appeals concerning the same issue were scheduled for regular hearing in the Customs and Service Tax Bench. Consequently, the Tribunal directed the registry to tag this appeal with those appeals for regular hearing, ensuring a consolidated approach to similar cases for efficient adjudication.

In conclusion, the judgment highlighted the Tribunal's consideration of the financial hardship faced by the charitable institution, leading to the waiver of pre-deposit of duty and penalty amounts. The decision aimed to alleviate the financial burden on the appellant while ensuring a fair and consolidated approach to similar cases for effective resolution.