2014 (3) TMI 797 - HC - Central Excise

Waiver of pre deposit - Tribuanl directed the appellant to pre-deposit 75% amount of duty. - Held that - It is considered appropriate that a sum of Rs. 40 lacs be deposited as a condition precedent for hearing of the appeal which was not disputed by the learned counsel for the appellant - Extention of time for submission of pre deposit granted.

Summary

Issues:
1. Condonation of delay in filing the appeal
2. Appeal under Section 35G of the Central Excise Act, 1944
3. Substantial questions of law raised in the appeal
4. Discrepancies in the adjudicating authority's order
5. Violation of principles of natural justice
6. Pre-deposit requirement and financial hardship
7. Extension of time for pre-deposit

Condonation of delay in filing the appeal:
The judgment addressed an application for condonation of a 231-day delay in filing the appeal. The delay was supported by reasons mentioned in the application, and it was ultimately condoned by the court.

Appeal under Section 35G of the Central Excise Act, 1944:
The appeal was filed under Section 35G of the Central Excise Act, 1944 against a stay order passed by the Tribunal. The appellant raised substantial questions of law regarding the pre-deposit amount required, inconsistencies in orders, prima facie case, violation of natural justice, financial hardship, and manifest injustice.

Substantial questions of law raised in the appeal:
The appellant questioned the justification of the Tribunal's order for pre-deposit, inconsistencies in passing orders for pre-deposit, the existence of a prima facie case, violation of natural justice in the adjudicating authority's order, undue financial hardship caused by the pre-deposit requirement, and the alleged manifest injustice in directing the pre-deposit amount.

Discrepancies in the adjudicating authority's order:
The adjudicating authority had issued a show cause notice proposing a duty demand, which was confirmed in an exparte order imposing a penalty. The appellant challenged the order through an appeal, highlighting discrepancies in the adjudicating authority's actions.

Violation of principles of natural justice:
The appellant contended that the Order in Original was passed exparte without providing relied upon documents or waiting for the appellant's reply, thus violating principles of natural justice.

Pre-deposit requirement and financial hardship:
The appellant argued that the pre-deposit requirement of 75% of the duty demand was unfair and excessive compared to a previous order requiring only 10% pre-deposit. The court decided that a deposit of Rs. 40 lakhs was sufficient for hearing the appeal, considering the financial circumstances of the appellant.

Extension of time for pre-deposit:
In the interest of justice, the court extended the time for the appellant to deposit Rs. 40 lakhs until a specified date. Compliance with this condition would allow the appeal to be heard on its merits as per the Tribunal's order.

Overall, the judgment addressed various legal issues related to the appeal, including procedural matters, substantial questions of law, financial considerations, and principles of natural justice, leading to a decision on the pre-deposit requirement and an extension of time for compliance.