2009 (5) TMI 938 - HC - Central Excise

Summary

Issues involved: Challenge to order of Customs, Excise and Service Tax Appellate Tribunal u/s 25th April, 2007, predeposit of penalty amount, appeal process, bank guarantee for duty drawback.

Challenge to Tribunal Order: The writ petitioner challenged the order of the Customs, Excise and Service Tax Appellate Tribunal dated 25th April, 2007, which directed predeposit of penalty amount of Rs. 1,00,000 for the appeal process. The petitioner sought relief from the requirement of predeposit due to a bank guarantee of Rs. 6,45,000 already secured for duty drawback.

Decision: The High Court modified the Tribunal's order, directing the Commissioner of Appeals to hear the appeal without insisting on the predeposit of Rs. 1,00,000. The petitioner was instructed to renew the bank guarantee until the Commissioner's order is communicated. No costs were awarded, and parties were to act on a signed copy of the order.

Legal Analysis: The High Court considered the fact that Rs. 6,45,000 was secured with the department and decided in favor of the petitioner, allowing the appeal process to proceed without the additional predeposit. The Court emphasized the importance of renewing the bank guarantee until the Commissioner's decision is received, ensuring compliance with the modified order.