2013 (1) TMI 171 - AT - Central Excise

Non compliance Pre deposit orders and report compliance on time - Held that - The appellant had deposited the amount of Rs.2 lakhs on 13.10.12 but did not report the compliance before the lower authorities as directed on or before 18.10.12. Failure to understand why the appellant had taken so much time for pre-deposit of an amount which is only Rs.2 lakhs, which has resulted in dismissal of appeal by the lower authorities. For this act of commission and omission, appellant should be put to further condition of pre-deposit of an amount of Rs.1 lakh be deposite within four weeks from today and report compliance to the first appellate authority on 07.01.13. On such compliance being reported on 07.01.13, the first appellate authority will take up the matter for disposal and pass an order on merits of the case.

Summary

Issues: Compliance with tribunal's order for pre-deposit, delay in compliance, dismissal of appeal, further condition of pre-deposit

In the judgment delivered by the Appellate Tribunal CESTAT Ahmedabad, the issue at hand revolved around the compliance with the tribunal's order for pre-deposit. The tribunal had directed the appellant to deposit Rs.2 lakhs by a specified date and report compliance to the first appellate authority. However, the appellant reported compliance three days after the directed date, leading to the dismissal of the appeal by the lower authorities. The appellant's counsel requested to send the case back for a conclusion on the merits, citing compliance with the pre-deposit order. The tribunal noted that although the appellant did deposit the amount on time, they failed to report compliance promptly. Consequently, the tribunal imposed a further condition of pre-deposit of Rs.1 lakh, to be completed within four weeks, with compliance to be reported by a specified date for the first appellate authority to proceed with the case on its merits.

The tribunal expressed perplexity over the appellant's delay in pre-depositing the relatively small amount of Rs.2 lakhs, which ultimately led to the dismissal of the appeal. The tribunal deemed this delay in compliance as an act of commission and omission on the appellant's part. As a result, the tribunal decided to impose an additional condition of pre-depositing Rs.1 lakh within a specified timeframe. Once this further pre-deposit is completed and compliance is reported to the first appellate authority, the authority can proceed with the disposal of the case and issue a decision on the merits. The stay petition and appeal were consequently disposed of based on the outlined conditions and directives provided by the tribunal.

Overall, the judgment focused on ensuring compliance with the tribunal's pre-deposit order, addressing the delay in compliance, rectifying the dismissal of the appeal, and imposing a further condition of pre-deposit to move forward with the case on its merits. The tribunal's decision aimed to uphold procedural requirements while allowing for a fair consideration of the case's substantive aspects by the first appellate authority.