2007 (9) TMI 526 - AT - Central Excise

Summary

Issues involved: Compliance with stay order u/s 77 & 78, modification of stay order for depositing duty amount in instalments.

The judgment pertains to compliance with a stay order u/s 77 & 78 issued by the Appellate Tribunal CESTAT, Ahmedabad. The appellant was directed to deposit Rs. 2.50 lakhs towards duty within 8 weeks from a specified date. When the compliance was to be ascertained, a modification application was filed by the appellant, but it was rejected for non-prosecution as nobody appeared. The matter was listed again for compliance, where the appellant's employee requested for 4 months' time to deposit Rs. 2 lakhs in 4 monthly instalments of Rs. 50,000 each.

The learned SDR argued that the appellant had only deposited a partial amount despite a year passing since the stay order was issued in November. It was contended that no further extension should be granted. However, the Tribunal noted the appellant's willingness to deposit the amount in instalments and the Revenue's failure to recover the amount. Considering the appellant's financial condition and readiness to make monthly deposits, the Tribunal allowed the modification application. The appellant was directed to deposit Rs. 50,000 every month starting from October onwards and report compliance on the second working Monday of each month. Failure to comply would lead to immediate dismissal of the appeal.

In conclusion, the modification application was disposed of with the above terms set by the Tribunal.