2008 (8) TMI 727 - AT - Central Excise

Summary

Issues involved:
The appellants sought recall of Stay Order directing pre-deposit due to insolvency petition filed by Managing Director. Revenue argued against recalling the order citing active involvement of the appellants in company affairs and the substantial duty amount involved.

Recall of Stay Order:
The appellants, facing financial crisis and insolvency, requested recall of the Stay Order directing pre-deposit of Rs. 10 lakhs. They highlighted that the company's assets had been auctioned, and the Managing Director had filed an insolvency petition as responsible for the company's debts. The appellants pleaded inability to pre-deposit any amount and sought full waiver of pre-deposit.

Revenue's Argument:
The Revenue opposed the recall, stating that the appellants were actively involved in the company's functioning when operational. They contended that the directed pre-deposit amount was small compared to the confirmed duty amount of over Rs. 2 crores, thus insisting on compliance with the stay order.

Judgment:
After considering the insolvency petition and the financial hardship faced by the appellants, the Tribunal recalled the stay order requiring pre-deposit of Rs. 10 lakhs and granted full waiver of pre-deposit. The Miscellaneous applications were allowed, and the matter was listed for out-of-turn hearing due to the substantial amount involved.