2013 (9) TMI 822 - HC - Central Excise

Waiver of pre-deposit - Held that - By way of clarification, it may be added that if the interest has not been quantified, the appellant may be permitted to deposit 25% in cash and furnish bank guarantee in respect of the duty - Subject to fulfillment of these conditions, the deposit of interest amount shall be deemed made - Decided in favour of assessee.

Summary

Issues:
1. Appeal against order directing deposit of disputed amount for entertainment of appeal under Central Excise Act 1944.
2. Whether complete waiver should have been granted considering strong prima facie case.
3. Applicability of Delhi High Court judgment on granting complete waiver.
4. Justification of Appellate Tribunal's decision on granting full waiver.

Analysis:
1. The judgment deals with an appeal filed under 35-G of the Central Excise Act 1944 against an order directing the appellant to deposit the disputed amount along with interest within a specified period as a condition for entertaining the appeal. The substantial questions of law framed in the memo of appeal revolve around the Tribunal's decision on granting stay of penalty without complete waiver despite a strong prima facie case.

2. The appellant argued for complete waiver or a reduced deposit, citing a strong prima facie case to support their claim. The counsel suggested depositing 25% in cash and furnishing a bank guarantee for the remaining amount to protect the department's interest. The respondent's counsel agreed to this suggestion, leading to the modification of the Tribunal's order with specific terms and conditions for deposit.

3. Reference was made to a judgment of the Delhi High Court in a similar case, questioning the Tribunal's decision on granting only a stay of penalty without complete waiver. The appellant sought complete waiver based on the applicability of the Delhi High Court judgment and the retrospective amendment in the Central Excise Tariff creating a liability on the manufacture of Polyester Staple Fibre.

4. Ultimately, the High Court disposed of the appeal based on the agreed terms between the parties. The appellant was required to deposit 25% of the excise duty in cash within a specified period and furnish a bank guarantee for the remaining amount to the satisfaction of the Assistant Commissioner, Central Excise. The judgment clarified the procedure for depositing interest amount and deemed it fulfilled upon meeting the specified conditions.

In conclusion, the judgment addressed the issues raised in the appeal regarding the deposit of disputed amounts under the Central Excise Act 1944, the considerations for granting complete waiver, and the applicability of relevant legal precedents in determining the outcome of the case.