2011 (7) TMI 1107 - HC - Central Excise

Summary

Issues involved: Restoration of three appeals before CESTAT due to non-compliance with pre-deposit condition.

Issue 1: Non-compliance with pre-deposit condition

The petitioners had appealed to CESTAT challenging a duty demand order, but their appeals were dismissed for non-compliance with the pre-deposit condition. Despite previous dismissals and failed attempts at extension, the petitioners now seek to make the required pre-deposit due to improved financial circumstances. The department opposes, citing past opportunities not utilized by the petitioners and disputing the valuation of the petitioners' properties under attachment.

Issue 2: Offer to make pre-deposit and pursue appeals

The petitioners offer to deposit a substantial sum as pre-deposit, in addition to the value of their attached properties, to pursue their appeals without seeking a stay on duty and penalty recovery. The Court acknowledges the petitioners' willingness to make significant pre-deposits and notes the lack of recovery by the department apart from the attached properties. Emphasizing the statutory right of appeal, the Court deems it appropriate to allow the petitioners to deposit the required amounts and proceed with their appeals on merits.

Decision:

The Court directs the petitioners to deposit Rs. 1 crore by a specified date and an additional Rs. 1.50 crores by a later date. Upon successful deposits, the appeals will be heard on merits by the Tribunal. Failure to deposit the amounts within the stipulated time will result in automatic dismissal of the appeals without further reference to the Court. Notably, there is no stay against the recovery of outstanding dues during this process, and the pre-deposit condition is solely for the purpose of hearing the appeals on merits before CESTAT.