2011 (8) TMI 406 - AT - Central Excise

Waiver of pre-deposit - appellant has deposited Rs.20,27,124/- (Rupees Twenty Lakhs, Twenty Seven Thousands, One Hundreds and Twenty Four only) before issuance of Show Cause Notice - the adjudicating authority has recorded in his Order-in-Original that Rs.20,27,124/- (Rupees Twenty Lakhs, Twenty Seven Thousands, One Hundreds and Twenty Four only) has been appropriated - find that the ld. Commissioner(Appeals) has disposed of the appeal for non-compliance without going into the merits of the case - Hence, set aside the impugned order and direct ld. Commissioner(Appeals) to decide the appeal on merits without insisting for any further pre-deposit, after following principles of natural justice.

Summary

Issues: Stay petition for waiver of pre-deposit of Rs.20,60,157/-; Dismissal of appeal by Commissioner(Appeals) for non-compliance despite partial payment made before Show Cause Notice issuance.

The Stay Petition was filed by the applicant seeking a waiver of pre-deposit of Rs.20,60,157/- along with interest and an equivalent penalty. The counsel argued that the appellant had already paid Rs.20,27,124/- before the Show Cause Notice was issued. Despite this, the Commissioner(Appeals) directed the appellant to deposit an additional Rs.5 lakhs for the appeal to be heard, which the appellant did not comply with, leading to the dismissal of the appeal for non-compliance. The counsel contended that the appeal should be disposed of without further pre-deposit due to the amount already paid by the appellant.

The Tribunal, after hearing both sides, decided that the appeal could be disposed of at that stage. They allowed the application for waiver of pre-deposit and proceeded with the disposal of the appeal. The Tribunal agreed with the counsel's argument, noting that the adjudicating authority had already recorded the appropriation of Rs.20,27,124/- paid by the appellant. They found that the Commissioner(Appeals) had dismissed the appeal for non-compliance without considering the merits of the case. The Tribunal concluded that the amount already deposited should be sufficient for the disposal of the appeal by the first appellate authority.

As a result, the Tribunal set aside the impugned order and directed the Commissioner(Appeals) to decide the appeal on its merits without requiring any additional pre-deposit, following the principles of natural justice. The appeal was allowed by way of remand, and the Stay Petition was also disposed of in the process.