2007 (5) TMI 611 - HC - Central Excise

Summary

Issues involved: Challenge to order of Customs Excise & Service Tax Appellate Tribunal on predeposit.

Summary:
The petition was filed against the Tribunal's order directing the petitioner to deposit a specific amount towards duty within a stipulated time frame. The Tribunal's decision was based on the dispute regarding the use of power by the company in question for mercerizing, with the Commissioner relying on statements and evidence to establish duty liability. The Tribunal noted the presence of electric connections and a Diesel Generating set, but the petitioner claimed the power was used for water and lighting purposes, not mercerizing. Despite retractions of statements, the Tribunal found the evidence in favor of the Revenue, indicating no prima facie case to dispense with the predeposit condition.

The Tribunal also considered the financial hardship plea of the petitioner, who submitted unaudited balance sheets. Given the significant duty amount outstanding and the prima facie observations against the petitioner, the Tribunal ordered a deposit of a specific sum within a specified period. Failure to comply would lead to dismissal of all appeals. The High Court, after reviewing the Tribunal's findings and the substantial duty amount owed, upheld the Tribunal's decision and dismissed the petition.

However, the High Court provided an opportunity for the petitioner to have the appeal considered on merits if an immediate partial payment followed by the balance within a set timeframe was made. This conditional provision was made to allow for a review of the appeal by the Tribunal.