2010 (9) TMI 597 - HC - Central Excise

Non-compliance of order - The CESTAT dismissed the appeal filed by the appellant for non-compliance of the pre-deposit order - The CESTAT referred the plea of hardship raised by the appellant, has not considered the same and arrived at any conclusion - The Tribunal has not considered the merits of the financial hardship pleaded by the appellant, the impugned orders are quashed and set aside - The appeal and stay application filed by the appellant are restored to the file of CESTAT - The Tribunal is directed to dispose of the stay application in accordance with law laid down by this Court as well as Apex Court - Hence, the impugned orders of the CESTAT being quashed and set aside

Summary

Issues:
Challenge against order of CESTAT directing deposit for appeal, non-compliance leading to dismissal, consideration of financial hardship plea, quashing of impugned orders, lifting of goods attachment, disposal of appeal.

Analysis:
The appeal before the High Court was against the CESTAT order directing a deposit of five crores for entertaining the appeal filed by the appellant against previous orders. The CESTAT dismissed the appeal due to non-compliance with the pre-deposit order. The High Court noted that the CESTAT did not consider the plea of financial hardship raised by the appellant, which was deemed necessary based on legal precedents. Referring to judgments like Benara Valves Ltd. and CEAT Ltd., the High Court quashed the orders of CESTAT dated 13-5-2010 and 26-7-2010. The appeal and stay application were restored to the file of CESTAT for reconsideration. The CESTAT was directed to dispose of the stay application in line with the legal principles established by the High Court and the Apex Court, suggesting simultaneous consideration of the stay application and appeal.

Regarding the consequences of quashing the impugned orders, the High Court directed the respondent to lift the attachment of the goods of the appellant, which was imposed on 28-8-2010. This action was taken in response to the annulment of the CESTAT orders. Ultimately, the High Court disposed of the appeal without issuing any specific order regarding costs. The judgment provided a detailed analysis of the legal aspects involved in the matter, ensuring that the principles of natural justice and legal precedents were adhered to throughout the decision-making process.