2011 (11) TMI 209 - AT - Central Excise

Application for restoration of appeal failure to pay pre-deposit - appeal dismissed for non-compliance thereafter deposied pre-deposit Held that - Appellant have deposited 50% of the penalty as directed in the order of this Tribunal towards pre-deposit though belatedly, thus the appeal may be restored Decided in favor of assessee.

Summary

Issues: Restoration of appeal, non-compliance with payment orders, financial difficulties of the appellant.

Restoration of Appeal: The appellant had initially been directed to deposit 50% of the penalty within a specified time frame. Despite various orders allowing installment payments, the appellant failed to comply, leading to the dismissal of the appeal for non-compliance. Subsequently, the appellant filed an application for restoration, citing financial difficulties and requesting more time to pay the balance amount. The Tribunal noted the appellant's submission that they had fully paid the required amount by the specified date. Considering the appellant's belated but eventual compliance with the pre-deposit requirement, the Tribunal allowed the application for restoration of appeal, emphasizing that the appeal would proceed for disposal.

Non-Compliance with Payment Orders: The appellant was initially granted permission to pay the penalty amount in installments after making an initial deposit. However, the appellant failed to adhere to the installment schedule, leading to the dismissal of the appeal. The Tribunal took note of the appellant's failure to deposit the installments as directed, which resulted in the dismissal order. Despite the dismissal, the appellant managed to make the final installment payment before the restoration application hearing, which played a crucial role in the Tribunal's decision to allow the restoration of the appeal.

Financial Difficulties of the Appellant: The appellant highlighted its financial struggles, including a drop in sales and reliance on government sector customers with delayed orders. The appellant expressed difficulty in meeting the payment deadlines due to these financial challenges. The Tribunal considered the appellant's precarious financial position and the efforts made to fulfill the payment requirements, ultimately granting the restoration of the appeal based on the appellant's belated but complete compliance with the pre-deposit condition.