2014 (8) TMI 978 - HC - Central Excise

Waiver of pre deposit - benefit of the exemption Notification - Held that - After ascertaining the stand of the learned counsel for the appellant and also of the learned counsel for the respondent, both agree that the appellant can be given an opportunity to make good its contentions in the appeals and the matter be decided on merits, on the condition that the appellant will deposit a sum of ₹ 40 lacs - Decided conditionally in favour of assessee.

Summary

Issues:
1. Tribunal's decision on pre-deposit requirement for availing exemption under Central Excise Act.
2. Court's refusal to grant stay due to non-deposit of mandatory amount leading to dismissal of appeals.
3. Assessment of appellant to a significant sum of money.
4. Dispute regarding commencement of commercial production before the specified date.
5. Reliance on employee's statement and officer's opinion in the case.
6. Legal arguments on substantial questions of law and the need for merit-based decision.
7. Conditions imposed by the Court for setting aside impugned orders and hearing the appeals on merits.

Analysis:
1. The Tribunal directed the appellant to make a pre-deposit of 50% of the excise duty to avail exemption under the Central Excise Act. The majority opinion upheld this decision despite the appellant's contentions.

2. The Court refused to grant a stay due to the appellant's non-compliance with the mandatory pre-deposit requirement, resulting in the dismissal of the appeals against assessment orders.

3. The appellant was assessed a substantial amount, leading to the filing of appeals against the orders. The Court heard arguments from both sides regarding the validity of the assessment and the pre-deposit requirement.

4. The main dispute revolved around whether the appellant had commenced commercial production before the specified date as required by the exemption Notification. The appellant argued that production had indeed started, while the respondent contended otherwise.

5. The appellant highlighted the reliance on an employee's statement and an officer's opinion to support their case. The refusal to allow cross-examination of the employee was a crucial point raised by the appellant.

6. Legal arguments were presented on substantial questions of law, with the respondent asserting that the orders were unassailable, while the appellant emphasized the need for a merit-based decision and challenged the sustainability of the pre-deposit directive.

7. The Court imposed conditions for setting aside the impugned orders and hearing the appeals on merits. The appellant was required to deposit specific amounts within designated time frames for each appeal to proceed with the merit-based adjudication. Both parties agreed to the conditions set by the Court for further proceedings.