2014 (6) TMI 121 - AT - Customs

Waiver of pre deposit - Encashment of bank guarantee - Assessee submits that if Revenue encashes bank guarantee to the tune of Rs.2.5 crores (Rupees two and half Crores) out of bank guarantee of Rs 9.00 crores, Valid Up to 27.1.2013 laying with Revenue authority, within two weeks from today that may not prejudice interest of Revenue to hear the Appellant on the basis of reply to the Show Cause Notice - Held that - When aforesaid cooperative proposal comes forward from Appellant and also appreciating that Revenue was in dark when there was non- cooperation of the Appellant in the past to complete adjudication, we direct Id. D.R. to transmit the sealed cover stated to have contained reply to the Show Cause notice to Id. Adjudication authority with an advice to extend his cooperation to the Appellant to encash the bank guarantee of the aforesaid extent within two weeks of receipt of this order - Decided in favour of assessee.

Summary

Issues:
1. Bank guarantee encashment by Revenue
2. Cooperation of the Appellant in adjudication process
3. Timely appearance before the Adjudicating authority
4. Consequences of non-compliance with directions
5. Legal principles guiding the judgment

Analysis:

1. Bank guarantee encashment by Revenue:
The judgment addresses the issue of encashment of a bank guarantee by the Revenue. The Appellant proposed to encash a portion of the bank guarantee, and the Tribunal directed the Revenue to cooperate with the Appellant in this regard. The order specified the amount to be encashed and instructed the Adjudicating authority to issue a notice of hearing upon encashment.

2. Cooperation of the Appellant in adjudication process:
Acknowledging the Appellant's cooperation in submitting a reply to the Show Cause Notice, the Tribunal emphasized the importance of the Appellant's cooperation with the Adjudicating authority for the encashment of the bank guarantee. The Appellant was directed to appear before the authority to facilitate the process and enable expeditious hearing of the case.

3. Timely appearance before the Adjudicating authority:
The judgment mandated the Appellant to appear before the Adjudicating authority without seeking adjournment once the date of hearing is fixed. The Appellant was instructed to present its defense on both factual and legal grounds within a specified timeline to ensure the expeditious resolution of the case.

4. Consequences of non-compliance with directions:
Failure to comply with the directions outlined in the judgment would result in the dismissal of the appeal. The Tribunal made it clear that adherence to the specified actions was crucial for the continuation of the appeal process and emphasized the importance of timely compliance.

5. Legal principles guiding the judgment:
The judgment referenced legal precedents, including judgments from the Apex Court and High Courts, to support the decision made. The Tribunal considered the interests of both the Revenue and the Appellant while issuing the order, ensuring a balanced approach based on established legal principles.

In conclusion, the Tribunal disposed of both the stay petition and the appeal based on the directions provided regarding the bank guarantee encashment, cooperation in the adjudication process, timely appearance before the Adjudicating authority, consequences of non-compliance, and legal principles guiding the judgment. The detailed instructions aimed to streamline the proceedings and ensure a fair and efficient resolution of the case.