2015 (9) TMI 978 - HC - Central Excise

Waiver of pre deposit - ex-parte order - Held that - Petitioner has not remained present and participated in the proceedings before the Tribunal. Time and again, the Tribunal was compelled to adjourn the proceeding at the request of the petitioner. Finally, when there was no participation, the Tribunal decided such application ex parte. Even after remand from this Court, the petitioner did not appear before the Tribunal. The petitioner again approached the Tribunal on the ground that there was no oral submissions made on behalf of the petitioner. The Tribunal while not accepting such ground, still further reduced requirement of pre-deposit of ₹ 60 lacs. In view of conduct of the petitioner, no further indulgence would be permissible. We do not see any reason why we should interfere with the order of the Tribunal in exercise of its discretionary jurisdiction in facts of this case. - Decided against assessee.

Summary

Issues:
Challenge to order reducing pre-deposit condition from Rs. 1 crore to Rs. 60 lacs for hearing appeal on merits.

Analysis:
The petitioner challenged an order by the Customs, Excise & Service Tax Appellate Tribunal (the Tribunal) reducing the pre-deposit condition from Rs. 1 crore to Rs. 60 lacs for hearing the appeal on merits. The petitioner contended that they had strong arguments and faced financial hardship. Initially, the Tribunal had directed a pre-deposit of Rs. 1.65 crores, which was later modified after a series of adjournments requested by the petitioner. The High Court, in a previous order, set aside the Tribunal's decisions and directed the matter to be reconsidered on merits. The petitioner failed to appear before the Tribunal on the set date, leading to an ex parte decision by the Tribunal, reducing the pre-deposit requirement to Rs. 1 crore. Subsequently, the Tribunal further reduced the pre-deposit to Rs. 60 lacs, citing lack of cooperation from the petitioner and distinguishing the case from a previous decision. Despite the petitioner's claims of non-participation and lack of oral submissions, the Tribunal upheld the reduced pre-deposit requirement. The High Court, considering the petitioner's conduct, dismissed the petition but extended the time for fulfilling the pre-deposit condition until 31-12-2014.

In conclusion, the High Court dismissed the petition challenging the Tribunal's order reducing the pre-deposit condition for hearing the appeal on merits. Despite the petitioner's claims of lack of participation and non-cooperation, the Tribunal's decision to reduce the pre-deposit to Rs. 60 lacs was upheld. The High Court extended the time for fulfilling the pre-deposit condition, allowing the Tribunal to hear the appeal on merit if the condition is met by 31-12-2014.