2012 (6) TMI 309 - AT - Central Excise

Plea for waiver of pre-deposit of duty and penalty of equal amount u/s 11AC - dismissal of appeal by Commissioner(Appeals) for non-compliance with the provisions of section 35F - assessee contended that the order for predeposit of 50% of all dues was passed without granting them personal hearing - Held that - After waiving the requirement of pre-deposit, it is held that since Commissioner(Appeals) has not decided the issues on merits. Therefore the case is remanded to Commissioner(Appeals) for deciding the issue on its merits without insisting for any further pre-deposit.

Summary

Issues:
Delay condonation, waiver of predeposit of duty and penalty, non-compliance with hearing requirements, remand for deciding on merits without predeposit.

Delay Condonation:
The applicant filed a miscellaneous application for condonation of an 11-day delay, which was granted by the Tribunal. The delay was condoned, and the stay petition was taken up for disposal.

Waiver of Predeposit of Duty and Penalty:
The applicant sought waiver of predeposit of duty and penalty under Section 11AC of the Central Excise Act, 1944. The Tribunal, after hearing both sides, waived the requirement of predeposit and took up the appeal for disposal. The Tribunal found that the Commissioner (Appeals) had not decided the case on its merits and remanded the case for a decision on merits without insisting on predeposit. All issues were kept open, and the appellants were to be given a reasonable opportunity of hearing.

Non-compliance with Hearing Requirements:
The contention was that the order for predeposit was passed without granting a personal hearing, and the appeal was dismissed for non-compliance with the provisions of section 35F of the Central Excise Act, 1944. The Tribunal found that the appeal could be disposed of at that stage, remanding the case for a decision on merits without requiring predeposit.

The judgment was pronounced in open court, disposing of the appeal by way of remand and also disposing of the stay petition and the miscellaneous application.