2015 (5) TMI 567 - HC - Central Excise

Waiver of pre deposit - clandestine removal and short stock goods - Held that - The question of undue hardship has been considered by the Tribunal and has held that in case of deposit of ₹ 12,00,00,000/- , it would not cause any undue hardship to the Assessee. - The Tribunal was not passing order on the appeal on merits. It was passing order on the application for waiver of pre-deposit of the amount of duty and penalty. The question of prima facie case is to be dealt with broadly. - no justification to interfere with the order passed by the Tribunal - Decided against assessee.

Summary

Issues: Tax appeal against Tribunal's order for waiver of pre-deposit of duty, penalty, and interest.

Analysis:
1. Facts: A show cause notice was issued to the Assessee for central excise duty, interest, and penalty for clandestine removal and short stock goods during 2002-2005.

2. Tribunal's Order: The Tribunal confirmed the duty and penalty, and the Assessee appealed for waiver of pre-deposit, which was partly allowed on depositing a specific amount within four weeks.

3. Contentions: The Appellant argued delay in the Tribunal's order, inadequate consideration of various points, including electricity consumption, raw material sale, and transportation of goods.

4. Legal Provision: Section 35-F of the Central Excise Act, 1944 deals with undue hardship in pre-deposit applications.

5. Undue Hardship Consideration: The Tribunal found that depositing the specified amount would not cause undue hardship to the Assessee.

6. Prima Facie Case: The Tribunal's consideration of the prima facie case was deemed broad, focusing on the waiver of pre-deposit rather than the appeal's merits.

7. Judgment: The High Court upheld the Tribunal's order, finding no merit in the appeal and dismissing it, stating no justification for interference.