2014 (11) TMI 744 - HC - Central Excise

Waiver of pre-deposit - Penalty u/s 11AC - Non production of clearance from CoD or any document that the application seeking clearance is pending - Held that - Following decision of Electronics Corporation of India Ltd. Versus Union of India & Ors. 2011 (2) TMI 3 - Supreme Court - stand of the Tribunal that the application is not maintainable because of non-production of clearance from CoD is not sustainable. - Matter restored before the tribunal.

Summary

Issues:
Challenge to order of Custom, Excise and Service Tax Appellate Tribunal dismissing application for waiver of pre-deposit of duty and penalty under Section 11AC of Central Excise Act, 1944 based on lack of clearance from Committee on Disputes (CoD).

Analysis:
The writ application was filed challenging the Tribunal's order dismissing the application for waiver of pre-deposit of duty and penalty under Section 11AC of the Central Excise Act, 1944. The Tribunal did not dismiss the application on merit but on the technicality that the appellant did not produce clearance from CoD or any document indicating a pending application for clearance. The petitioner relied on an unreported judgment of the Court in a similar case where the Supreme Court's orders requiring CoD clearance were recalled. The Court emphasized the purpose of the CoD was to avoid unnecessary litigation and delays, but due to inefficiencies, it led to delays and inconsistencies, prompting the Supreme Court to recall its earlier orders mandating CoD clearance. The Court held that the Tribunal erred in dismissing the application based on the requirement of CoD clearance, which was no longer valid after the Supreme Court's recall of such orders. The Court cited a Supreme Court decision stating that principles of law enunciated by the Supreme Court are applicable to all cases, regardless of the stage of pendency, unless expressly indicated otherwise. Therefore, the Tribunal's decision was set aside, and the Tribunal was directed to reconsider the application in light of the law within two months, providing an opportunity for all interested parties to be heard.

In conclusion, the Court allowed the petitioner to correct the prayer in the writ petition and set aside the Tribunal's order dismissing the application for waiver of pre-deposit of duty and penalty. The Tribunal was directed to review the application afresh within two months, following the law laid down by the Supreme Court regarding the requirement of CoD clearance. The writ petition was disposed of with no order as to costs.