2014 (4) TMI 148 - HC - Central Excise

Waiver of pre deposit - Quantum of pre deposit - manufacture of tractor parts - Held that - Pre deposit amount requested by appellnt is reduced to Rs 12 Lacs from Rs. 25 lacs - However, time period to make pre deposit is extended - Decided partly in favour of assessee.

Summary

Issues:
- Appeal under Section 35G of the Central Excise Act, 1944 against Tribunal's order
- Quantum of pre-deposit for hearing the appeal by the Commissioner (Appeals)

Analysis:
1. The appeal was filed by the assessee under Section 35G of the Central Excise Act, 1944 against the order passed by the Tribunal. The appellant, engaged in the manufacture of tractor parts, was issued a notice in 2000 for recovery of a substantial sum, which was confirmed by the adjudicating authority along with a penalty. Subsequent appeals and orders led to varying decisions, ultimately resulting in the present appeal.

2. The primary issue in this case revolved around the quantum of pre-deposit required for hearing the appeal by the Commissioner (Appeals). Initially, the Commissioner directed a deposit of Rs. 25 lacs, which the appellants found excessive due to financial constraints. The Tribunal upheld this amount, leading to the appellants' non-compliance and subsequent dismissal of the appeal. The High Court, after considering arguments from both parties, reduced the pre-deposit amount to Rs. 12 lacs, deeming it sufficient for the appeal to be heard.

3. In the final judgment, the High Court disposed of the appeal, setting aside previous orders dismissing the appeal for non-compliance. The appellants were granted time until a specified date to deposit the revised pre-deposit amount. It was emphasized that failure to comply would result in the dismissal of the appeal. The Court's decision aimed to balance the financial constraints of the appellants with the requirement of a reasonable pre-deposit amount for the appeal to proceed.