2008 (12) TMI 474 - AT - Central Excise

Summary

Issues:
Stay applications against pre-deposit of amounts for capital goods and raw materials; consideration of financial hardship due to heavy losses and business closure.

Analysis:

Capital Goods Pre-deposit:
The Tribunal considered stay applications against pre-deposit for capital goods and raw materials. The appellant had previously been directed by the Tribunal to reconsider the issue of depreciation on capital goods. The adjudicating authority confirmed the demands despite the direction. The appellant, represented by a learned representative, highlighted the company's non-functioning status and its application to be declared a sick industry under SICA. The appellant's Chartered Accountant issued a certificate showing a substantial loss. The learned DR suggested imposing conditions due to the company's sick unit status.

Financial Hardship Consideration:
Upon reviewing the submissions and records, the Tribunal noted the significant loss reported by the Chartered Accountant and the appellant's statement regarding the heavy loss. The company was not operational, and aqua culture activities were banned by the Supreme Court. Given these circumstances, the appellant expressed an inability to make any pre-deposit. Acknowledging the severe financial hardship, the Tribunal waived the pre-deposit condition and stayed the recovery until the appeal's disposal. Despite the revenue implications, the matter was scheduled for final hearing in March 2009.

This judgment showcases the Tribunal's careful consideration of the appellant's financial distress and the impact of external factors on the company's operations. The decision to waive the pre-deposit requirement reflects a balance between revenue interests and the appellant's challenging circumstances, emphasizing the importance of assessing individual cases with sensitivity to ensure justice and fairness.