2009 (9) TMI 913 - HC - Central Excise

Pre-deposit - Held that - It is not in dispute that the petitioner is a Government of India undertaking. Solvency is beyond doubt. The question sought to be raised in appeal no doubt needs serious consideration by the Tribunal however one cannot say that no prima facie; case was made out by the petitioner for complete waiver of the pre-deposit. As a matter of fact as per the instructions of the Board petitioner is exempted from furnishing any security - the direction of pre-deposit of 1, 11, 67, 333/- stands substituted with that of general bond for the full amount of duty - petition allowed - decided in favor of petitioner.

Summary

The High Court Bombay High Court, in the 2009 case of V.C. Daga and J.P. Devadhar, JJ., heard a petition against an order from the Customs, Excise and Service Tax Appellate Tribunal. The Tribunal had directed the petitioner to pre-deposit a substantial amount of duty within eight weeks, with a penalty for non-compliance. The High Court, without delving into the details of the case, referred to a previous similar case where a general bond was accepted in place of the pre-deposit. The High Court modified the order, substituting the pre-deposit requirement with a general bond and directed the petitioner to execute the bond within four weeks. The petition was partly allowed, and the rule was made absolute with no costs.