2014 (6) TMI 59 - HC - Central Excise

Waiver of pre deposit - Qauntum of deposit - Held that - appellant has already deposited a sum of ₹ 25 lacs, we are of the opinion that the ends of justice would be met if the Tribunal is directed to hear the appeal on merits without insisting for pre-deposit of the remaining amount - Decided in favour of assessee.

Summary

Issues:
- Appeal under Section 35G of the Central Excise Act, 1944 against the Tribunal's order.
- Dispute over the quantum of pre-deposit required for hearing the appeal.
- Justification of the pre-deposit amount directed by the Tribunal.

Analysis:
The appellant, engaged in manufacturing auto parts, appealed against the Customs Excise and Service Tax Appellate Tribunal's order dated 5.3.2014. The appellant contended that goods manufactured and consumed internally were duty-exempt as per a notification. However, after inspections and investigations, a substantial duty amount was demanded along with penalties. The adjudicating authority confirmed the duty and penalties, which was upheld by the Commissioner (Appeals). Subsequently, the Tribunal directed the appellant to deposit the entire duty demand, except the amount already paid, for hearing the appeal.

In response to the Tribunal's direction, the appellant argued that the pre-deposit amount was excessive and unfair. The appellant had already deposited a total of Rs. 25 lacs, exceeding the directed amount. On considering the arguments from both sides and the appellant's substantial deposits, the Court found the pre-deposit amount reasonable. Consequently, the Court ordered the Tribunal to proceed with hearing the appeal on merits without requiring further pre-deposit.

Therefore, the primary issue revolved around the quantum of pre-deposit for the appeal hearing, with the Court ultimately deciding in favor of the appellant due to the substantial deposits already made, allowing the appeal to proceed without additional pre-deposit requirements.