2014 (4) TMI 1072 - HC - Central Excise

Waiver of pre deposit - Merit case in favour of assessee - Held that - waiver of pre-deposit is not sought on the ground of financial hardship or economic constrain or showing any reason on the part of the petitioner as to why the amount cannot be deposited except for contending that they have a very good case and their appeal is likely to be allowed, no other ground is pointed out, which goes to show that the petitioner has any hardship in the matter from making pre-deposit. - Decided in favour of assessee.

Summary

Issues: Challenge to interlocutory order permitting waiver of pre-deposit amount in appeal under Section 35 of Central Excise Act, 1944.

Analysis:
1. The writ petition challenged an interlocutory order allowing waiver of pre-deposit in an appeal under Section 35 of the Central Excise Act, 1944. The petitioner sought 100% waiver of the pre-deposit amount of &8377; 12,76,94,019, arguing that the duty imposition was unsustainable due to a strong case on merit.

2. The respondent contended that waiver of pre-deposit is permissible based on financial hardship, which the petitioner failed to demonstrate. The respondent argued that without showing any financial constraints, the discretion exercised for waiver is not sustainable. The petitioner's only assertion was the strength of their case, without pointing out any hardship in making the pre-deposit.

3. The Court acknowledged the respondent's objection, emphasizing that the petitioner did not seek waiver based on financial hardship or economic constraints. The Court noted that apart from claiming a strong case and potential success in the appeal, the petitioner did not provide any grounds to justify the waiver. Consequently, the Court found no evidence of hardship in the petitioner's case justifying the waiver.

4. After considering the facts and circumstances, the Court upheld the appellate authority's decision to reject the prayer for waiver of the pre-deposit amount. The Court concluded that there was no valid reason to interfere with the discretion exercised by the appellate authority in denying the waiver.

5. As a result, the Court dismissed the petition challenging the interlocutory order permitting waiver of pre-deposit amount in the appeal under Section 35 of the Central Excise Act, 1944.