2012 (5) TMI 651 - HC - Central Excise

Extension of time for deposit of the amount pursuant to order dated 08.12.2005 - Held that - The petitioner having failed to deposit ₹ 5 lacs and furnish indemnity bond, the consequence of such failure ensued immediately thereafter and there is no occasion for consider prayer of extension of time to deposit the amount at this distance of time - there is no justification to entertain the application after such a long period of more than 6 years - application rejected.

Summary

Issues:
Extension of time for deposit of amount pursuant to court order dated 08.12.2005 - Proviso to Section 35 F of the Central Excise Act, 1944 - Discretionary nature of impugned order - Financial hardship considerations - Failure to deposit amount within specified time frame - Application for extension of time filed after 6 years.

Analysis:

The applicants sought an extension of time for depositing an amount following a court order dated 08.12.2005. The order stemmed from a writ petition filed against a decision by the Customs Excise and Service Tax Appellate Tribunal, New Delhi, which directed the petitioner to deposit a specific sum. The petitioner argued that the Tribunal erred in not granting full waiver due to the unit being closed since 1997 and the demand being based on irrelevant documents. On the other hand, the standing counsel contended that the Tribunal's order was discretionary and considered factors like financial hardship. The court examined relevant precedents and the provisions of the Central Excise Act, emphasizing the need to safeguard revenue interests while addressing undue hardship. Consequently, the court modified the Tribunal's order, directing the petitioner to deposit a reduced amount and furnish an indemnity bond within a specified period to proceed with the appeal.

The court highlighted the importance of timely compliance with its orders, emphasizing that the petitioner failed to deposit the specified amount and furnish the required bond within the prescribed timeframe. The petitioner belatedly deposited the amount after approximately 7 years, leading to the rejection of the application for an extension of time filed six years later. The court reasoned that there was no justification for entertaining the application after such a prolonged period, ultimately rejecting both applications due to the significant delay in compliance.

In conclusion, the judgment addressed the extension of time for depositing an amount following a court order, considering the discretionary nature of the Tribunal's decision, financial hardship arguments, and the petitioner's delayed compliance. The court's decision underscored the importance of timely adherence to court directives and the implications of prolonged non-compliance, leading to the rejection of the application for an extension of time due to the substantial delay in meeting the specified obligations.