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2015 (6) TMI 110 - HC - CustomsWaiver of pre deposit - mandatory pre deposit - applicability of amended provisions to the old matters - Held that - the effect of the amendment cannot be restricted only for those appeals which are filed after 06.08.2014. Such a restriction will be violative of Article 14 of the Constitution of India and taking note off the amendment introduced from 6th August, 2014, interim protection has been granted provided the appellant deposits 10% of the adjudicated amount in terms of the amendment of Sec. 35F, recovery proceedings in furtherance thereto have been kept in abeyance and that has been relied upon by the coordinate Bench of this Court in DB Central Excise Appeal 2015 (4) TMI 463 - RAJASTHAN HIGH COURT . - Partial stay granted.
Issues:
1. Compliance with the order of the Customs, Excise & Service Tax Appellate Tribunal regarding deposit of duty. 2. Financial distress leading to non-compliance with the Tribunal's order. 3. Interpretation of the amended provisions of Section 35F regarding pre-deposit requirements for appeals. 4. Comparison with previous judgments regarding the applicability of the amended provisions. 5. Decision on the stay of recovery proceedings initiated against the appellant. Compliance with Tribunal's Order: The appellant failed to comply with the order of the Customs, Excise & Service Tax Appellate Tribunal, which directed the deposit of 50% of the duty of customs and excise within a specified period. Non-compliance led to the dismissal of the appeal and initiation of recovery proceedings against the appellant. The Tribunal recalled and restored the appeal but proceeded with recovery actions due to the initial non-compliance. Financial Distress and Non-Compliance: The appellant cited financial distress as the reason for non-compliance with the Tribunal's order. Despite the financial difficulties, the Tribunal initiated recovery proceedings against the appellant for failing to adhere to the deposit requirements. The appellant moved an application for recalling/restoration of the appeal, which was granted, but recovery actions continued. Interpretation of Amended Section 35F: An amendment to Section 35F was highlighted, which introduced pre-deposit requirements of 7.5% and 10% of the duty for first and subsequent appeals, respectively. The amended provisions specified the conditions under which the Tribunal could entertain appeals, emphasizing the need for depositing a percentage of the duty or penalty disputed in the appeal. Comparison with Previous Judgments: The counsel referred to previous judgments where the High Court considered the effect of the amended provisions of Section 35F, even for appeals filed before the introduction of the amendment. The Court granted interim protection and stayed recovery proceedings based on the appellant's compliance with the amended pre-deposit requirements, as mandated by the new provisions. Decision on Stay of Recovery Proceedings: In line with the previous judgments and considering the appellant's submission, the High Court decided to stay the future recovery pursuant to the Tribunal's order, subject to the appellant complying with the pre-deposit condition under the amended Section 35F. The Court directed the appellant to deposit 10% of the adjudicated amount within a specified period to maintain the stay on recovery proceedings. Failure to comply would automatically revive the recovery actions without further reference to the Court.
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