2013 (7) TMI 898 - HC - Central Excise

Summary

Issues involved:
The issues involved in the judgment are:
1. Whether the Tribunal can go into the merits of the case in detail while deciding applications for dispensation of pre-deposit.
2. Whether the Tribunal has judiciously exercised its discretion in concluding that no prima facie case has been made out and that the case requires further detailed consideration.

Issue 1:
The appellant contended that a strong prima facie case was made out regarding the classification of vehicles under the Central Excise Tariff, which led to a differential duty compared to a competitor. The Tribunal did not consider this discrimination issue, which was deemed a strong prima facie case by the High Court. The High Court disagreed with the Tribunal's conclusion and found that the case warranted further detailed consideration, indicating the existence of a prima facie case. The High Court reduced the pre-deposit amount from Rs. 20.00 crores to Rs. 10.00 crores, emphasizing that a strong prima facie case existed, and no extreme hardship was shown to warrant full dispensation. The appellant was given liberty to apply for an expeditious hearing upon making the reduced deposit within four weeks.

Issue 2:
The High Court observed that when the Tribunal determined that the case required further detailed consideration and analysis of statutory provisions, it implied the existence of a prima facie case. The High Court found the Tribunal's exercise of discretion to be not judicious in this case, especially considering the strong prima facie case presented. It was held that a strong prima facie case constitutes hardship, thus justifying a reduction in the pre-deposit amount. The High Court modified the Tribunal's judgment to reduce the pre-deposit to Rs. 10.00 crores and allowed the appellant to seek an expedited hearing upon making the reduced deposit within four weeks.

This summary provides a detailed breakdown of the judgment, addressing each issue involved and highlighting the key points and decisions made by the High Court.