2015 (10) TMI 2570 - HC - Central Excise

Stay application - duty demand - appellant filed the present appeal contending that subsequent to the order of the Tribunal dated 21st April, 2014, the financial status of the appellant company has deteriorated and that it has become a sick industry and alternatively the appellant may be permitted to comply with the pre-deposit of the order of the Tribunal by utilizing the CENVAT credit that is availabl - Held that - Upon considering, we find that even though these assertions were raised by the appellant in their written submissions, which has been treated by the Tribunal as a Misc. application, no consideration on these aspects have been indicated by the Tribunal in the impugned order. We, accordingly, dispose of the appeal directing the appellant to make a fresh application bringing these facts before the Tribunal within four weeks from today. If such an application is filed for modification of the order of the Tribunal dated 21st April, 2014, the same shall be dealt with and appropriate orders would be passed within four weeks thereafter after giving an opportunity of hearing to the appellant.

Summary

Issues:
- Appeal against order by Commissioner
- Stay application with pre-deposit condition
- Rejection of modification applications by Tribunal
- Appellant's deteriorated financial status
- Request to utilize CENVAT credit for pre-deposit

Analysis:
The judgment pertains to an appeal filed against an order by the Commissioner, where the appellant sought relief from a pre-deposit condition imposed by the Tribunal. The Tribunal had directed the appellant to make a pre-deposit of Rs. 1.50 crores for staying a demand amounting to Rs. 28 crores for central excise duty and penalty. Despite the appellant's financial difficulties and status as a sick industry under the Sick Industrial Companies (Special Provisions) Act, 1985, the Tribunal rejected three applications for modifying the pre-deposit order.

The High Court noted that the Tribunal did not address the appellant's contentions regarding their deteriorated financial status and the possibility of utilizing available CENVAT credit for the pre-deposit. Consequently, the Court disposed of the appeal by instructing the appellant to file a fresh application before the Tribunal within four weeks, highlighting the relevant facts. The Court directed the Tribunal to consider this new application promptly, within four weeks of its submission, after providing the appellant with an opportunity to be heard. This decision aims to ensure a fair assessment of the appellant's financial situation and the potential use of CENVAT credit for the pre-deposit, addressing the concerns raised by the appellant in their appeal.