2014 (7) TMI 835 - HC - Central Excise

Waiver of pre-deposit - tribunal directed the appellant to make pre-deposit - assessee sought additional time to deposit the amount - Held that - further time to make pre-deposit as per the order of tribunal granted - On depositing of the aforesaid balance amount of ₹ 8 lacs on, or before, 9th August, 2014, with the adjudicating authority, it is to decide the matters in accordance with law and on merits, at the earliest. It goes without saying that, if, the aforesaid balance amount of ₹ 8 lacs is not deposited with the adjudicating authority by 9th August, 2014, necessary CONSEQUENCE shall follow. - tax appeals are DISPOSED OF.

Summary

Issues:
1. Appellants challenging impugned orders by CESTAT
2. Jurisdiction of Tribunal to direct deposit for denovo adjudication
3. Request for withdrawal of appeals and deposit of balance amount
4. Granting additional opportunity to deposit balance amount
5. Disposal of tax appeals and civil applications

Analysis:
1. The appellants were aggrieved by the orders passed by the CESTAT and filed Tax Appeals questioning the direction for deposit of Rs. 20 lakhs and/or Rs. 8 lakhs for denovo adjudication. The proposed questions of law raised the issue of the Tribunal's jurisdiction to order such deposits in the absence of confirmed liabilities against the assessee and when denovo adjudication was needed due to a violation of natural justice by the adjudicating authority.

2. During the arguments, the appellants sought to withdraw the appeals and civil applications, with a request to grant time for depositing the balance amount of Rs. 8 lakhs. The Court allowed an additional opportunity for the appellants to deposit the balance amount with the adjudicating authority by a specified date, emphasizing that failure to comply would have necessary consequences.

3. The Court granted time until 9th August, 2014, for the appellants to deposit the balance amount of Rs. 8 lakhs, with instructions for the adjudicating authority to decide the matters in accordance with the law and on merits upon such deposit. It was made clear that cooperation with the adjudicating authority was expected for the early disposal of the appeals.

4. If the balance amount was not deposited by the specified date, necessary consequences would follow. However, if the deposit was made as directed, the adjudicating authority was to proceed with adjudication promptly. The appellants' assurance of cooperation was noted, leading to the disposal of the tax appeals.

5. With the main matters disposed of, the civil applications were also deemed disposed of accordingly, as they would not survive post the disposal of the tax appeals. The judgment concluded with the disposal of the tax appeals and civil applications, based on the actions and assurances provided during the proceedings.