2013 (9) TMI 911 - HC - Central Excise

Challenge against Pre-deposit - There was nothing wrong in the conditional order passed by the Tribunal - Therefore, the question of interference with the conditional order does not arise - However, as the appellant has filed the two appeals, it would be appropriate to set aside the order dismissing the appeal for non-compliance of the conditional order to make deposit as ordered by the Tribunal - On such deposit, the appeal shall be restored to its original file and the Tribunal shall hear the appeal on merits and in accordance with law Decided against Assessee.

Summary

Issues:
1. Challenge to the order of Customs, Excise and Service Tax Appellate Tribunal regarding predeposit amount.
2. Appeal for modification of the order due to impossibility of performance.
3. Dismissal of the appeal for non-compliance.
4. Interference with the conditional order by the High Court.

Analysis:

Issue 1: The appellant challenged the order of the Customs, Excise and Service Tax Appellate Tribunal directing him to predeposit Rs. 25,00,000 within six weeks. The Tribunal granted waiver of predeposit and stay of recovery subject to due compliance, specifically concerning penalties and demands imposed on the appellant.

Issue 2: The appellant filed an application seeking modification of the order, citing impossibility of performance. The Tribunal refused to extend the time for deposit as the appellant failed to comply with the initial order. The appellant's appeal and application were dismissed for non-compliance, leading to the filing of CEANo.11/2013.

Issue 3: The High Court heard both parties and found no fault in the conditional order passed by the Tribunal. However, considering the circumstances, the Court set aside the order dismissing the appeal for non-compliance. The appellant was given four weeks to deposit the specified amount, upon which the appeal would be restored for a hearing on merits.

Issue 4: The High Court dismissed CEA No.53/2012 while allowing CEA No.11/2013, granting the appellant four weeks to deposit Rs. 25,00,000. The Tribunal was instructed to restore the Service Tax Appeal to its original file for a proper hearing in accordance with the law.

In conclusion, the High Court upheld the Tribunal's conditional order but provided the appellant with an opportunity to comply within a revised timeframe to ensure a fair hearing of the appeal on its merits.