2013 (11) TMI 887 - AT - Customs

Waiver of pre deposit - Non-compliance of the stay order - Held that - The appellant paid the amount of duty and penalty on 01.02.12 - two amounts were directed by the first appellate authority to be deposited for hearing and disposing the appeal by the appellant. The appellant having complied with the direction of the first appellate authority to pre-deposit of the amount, though belatedly, we find that he should be given an opportunity of presenting his case before the first appellate authority on the merits of the issue. Accordingly, we set aside the impugned order and direct the first appellate authority to restore the appeal of this appellant to its original number and decide the same on the merits of the case after following the principles of natural justice - matter remanded back.

Summary

Issues: Non-compliance of stay order, pre-deposit of duty and penalty, restoration of appeal

Non-compliance of Stay Order:
The appeal and stay petition were filed against the order rejecting four appeals for non-compliance of the stay order issued by the first appellate authority. The appellant failed to deposit the directed amount of duty and penalty within the specified time frame, leading to the rejection of the appeals. The appellant later claimed to have paid the amount belatedly, supported by challans as evidence. The Tribunal acknowledged the compliance with the direction and decided to give the appellant an opportunity to present their case before the first appellate authority on the merits of the issue. The impugned order was set aside, and the first appellate authority was directed to restore the appeal and decide it based on the merits and principles of natural justice.

Pre-deposit of Duty and Penalty:
The first appellate authority had directed the appellant to deposit a specific amount of duty and penalty, which the appellant failed to do within the stipulated time. However, the appellant later submitted proof of payment through annexed challans, confirming compliance with the direction. The Tribunal considered this belated compliance and waived the pre-deposit requirement, allowing the appeal to be disposed of without the need for the initial deposit. This decision was made in light of the appellant's eventual payment and the confirmation by the Departmental Representative regarding the amounts directed for deposit by the first appellate authority.

Restoration of Appeal:
The Tribunal, after considering the appellant's belated compliance with the pre-deposit requirement, set aside the impugned order and directed the first appellate authority to restore the appeal to its original status. The appellant was granted the opportunity to present their case before the first appellate authority on the merits of the issue, emphasizing the importance of following the principles of natural justice in deciding the appeal. By restoring the appeal, the Tribunal ensured that the appellant would have a fair chance to have their case heard and decided based on the merits, providing a procedural remedy for the earlier non-compliance with the stay order.