2010 (3) TMI 820 - HC - Central Excise

Waiver of pre-deposit - order of the tribunal - Held that - Tribunal had considered the merits of the case and that mere absence of reference to the decision of the Coordinate Bench per se does not mean that the Tribunal had not considered the contention of the petitioner, writ petition is disposed of, application for waiver rejected

Summary

Issues:
- Appeal against the order of the Tribunal rejecting waiver of pre-deposit condition.
- Petitioner's contention regarding failure to consider Coordinate Benches decision.
- Tribunal's direction to deposit a specific amount and subsequent modification application.
- Tribunal's consideration of petitioner's financial constraints and final directive.

Analysis:
1. The primary issue in this case revolves around the appeal filed against the Tribunal's decision rejecting the waiver of the pre-deposit condition for the appeal's maintainability. The Tribunal had initially directed the petitioner to deposit Rs. 30 lakhs within six weeks to waive the pre-deposit of the remaining duty and penalty amounts pending appeal.

2. The petitioner raised a significant contention that the Tribunal failed to consider a decision from Coordinate Benches that was crucial for establishing a prima facie case. Despite the petitioner's argument, the Tribunal upheld its decision and rejected a modification application seeking a reconsideration based on the Coordinate Benches decision.

3. Upon review of the petitioner's financial situation, the Court acknowledged the recent exit from BIFR proceedings and financial constraints faced by the petitioner. Consequently, the Court modified the deposit amount, reducing it to Rs. 10 lakhs to be paid within six weeks. This payment would result in a stay of the pre-deposit requirement for the remaining duty and penalty amounts pending appeal, with a directive for expeditious disposal of the appeal by the Tribunal.

4. The Court emphasized that the decision to waive the pre-deposit condition is a matter of discretion based on the prima facie case presented by the petitioner. Despite the petitioner's argument regarding the Coordinate Benches decision, the Court found no justification to interfere with the Tribunal's order. However, considering the petitioner's financial challenges, the Court exercised discretion in reducing the deposit amount to alleviate the financial burden on the petitioner.

5. Ultimately, the writ petition was disposed of with the directive for the revised deposit amount and a reminder for the Tribunal to promptly resolve the appeal. No costs were awarded, and all connected matters were closed in light of the judgment.