2007 (1) TMI 484 - AT - Central Excise

Summary

Issues:
1. Appeal dismissal due to non-deposit of required amount.
2. Request for restoration of the appeal and modification of interim order.
3. Interpretation of the decision in Favourite Food Products case.
4. Validity of modifying the impugned order.

Analysis:
1. The appellant failed to deposit 50% of the amount as per the interim stay order, leading to the dismissal of the appeal on 12-12-2006. A modification application was filed post-dismissal seeking restoration of the appeal, which was allowed to include a prayer clause for restoration.

2. Post the amendment, the Tribunal heard the appellant's counsel on the merits of the application, requesting restoration of the appeal and modification of the earlier interim order. The counsel contended that a different Bench had referred similar appeals to a Larger Bench due to disagreement with a previous decision, impacting the current appeal.

3. The Tribunal referenced the Favourite Food Products case where the classification of the product in question was pivotal. The appellant's initial declaration classified the product under a specific heading before changing it subsequently. The Tribunal noted that prima facie, the appellant failed to establish a case based on the Larger Bench's decision and its own initial declaration.

4. The Tribunal emphasized that the reference of other appeals to a Larger Bench did not alter the decision's ratio in the Favourite Food Products case, which formed the basis of the interim order. The failure to make the pre-deposit led to the appeal's dismissal, and the Tribunal found no substantial reason to modify the impugned order or restore the appeal. The application was deemed without merit and rejected accordingly.

This detailed analysis highlights the sequence of events leading to the appeal's dismissal, the arguments presented by the appellant's counsel, the significance of the Favourite Food Products case, and the Tribunal's reasoning for rejecting the application for modification and restoration of the appeal.