2011 (7) TMI 884 - HC - Central Excise

Waiver of pre-deposit - the learned Advocate for the appellant has pointed out several decisions of the CESTAT wherein, the CESTAT has granted full waiver of the deposit as an interim relief where the facts are similar to the present case - Held that no substantial question of law has been raised by the appellant and that the CESTAT has not committed any error in directing the appellant to deposit a part of the duty and penalty - Appeal is allowed

Summary

Issues:
1. Appeal against CESTAT's order for deposit of duty and penalty.
2. Applicability of full waiver of deposit in similar cases.
3. Interpretation of Division Bench's observation on waiver of pre-deposit.
4. Existence of substantial question of law.
5. Consistency in granting waiver of pre-deposit by the Tribunal.

Analysis:

Issue 1: The appellant filed an appeal against the Customs, Excise and Service Tax Appellate Tribunal's (CESTAT) order directing the deposit of 50% duty and 25% penalty within four weeks.

Issue 2: The appellant cited previous CESTAT decisions granting full waiver of deposit in similar cases such as Nasik Strips Pvt. Ltd. and Mithulal Gupta Bhavshakti Steelmines Pvt. Ltd.

Issue 3: Reference was made to Wardha Coal Transport Pvt. Ltd. vs. Union of India where the Division Bench observed that consistent views should be taken on pre-deposit waivers in similar cases.

Issue 4: The respondent argued that no substantial question of law was raised by the appellant, and CESTAT's decision was not erroneous.

Issue 5: The High Court remanded the matter to the Tribunal for a consistent view on pre-deposit waivers considering past decisions. The Tribunal was directed to consider previous orders in Nasik Strips Pvt. Ltd. and Mithulal Gupta Bhavshakti Steelmines Pvt. Ltd. before deciding on the appellant's entitlement to waiver. The appellant was required to appear before the Tribunal on a specified date.

The appeal was allowed, and no costs were awarded. The civil application was disposed of accordingly.