2015 (10) TMI 2277 - HC - Central Excise

Waiver of pre deposit - Undue hardship - Held that - decision making process of the Tribunal with regard to waiver of pre-deposit suffers from procedural irregularity and is unsustainable in its present form. The orders dated 17-12-2013 and 21-4-2014 are set aside. Central Excise Appeal 2015 (10) TMI 1024 - CESTAT NEW DELHI is restored to file on merits. The Tribunal shall hear the appellant on its application for waiver of pre-deposit afresh, preferably within a maximum period of four weeks from the date of receipt and or production of a copy of this order before the Tribunal by either party. - Stay granted.

Summary

Issues: Procedural irregularity in waiver of pre-deposit by the Tribunal.

In this judgment by the Chhattisgarh High Court, the appeal arose from an order passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi, which dismissed the appeal due to the appellant's failure to comply with an interim order for depositing a specified amount. The High Court emphasized that it was not concerned with the merits of the case at that stage but highlighted the Tribunal's failure to consider the appellant's contentions regarding the extent of pre-deposit and the claimed undue hardship. The Court noted that the Tribunal did not address these issues adequately, even when the appellant filed an application for modification citing discrimination in the waiver of pre-deposit. The High Court found procedural irregularity in the Tribunal's decision-making process and deemed the orders in question unsustainable. Consequently, the High Court set aside the orders and restored the appeal for a fresh hearing on the application for waiver of pre-deposit, directing the Tribunal to hear the appellant within a maximum period of four weeks from the date of the order. The Court warned that if the pre-deposit issue's resolution was delayed due to reasons attributable to the appellant, the order would stand and the writ petition would be dismissed. Ultimately, the High Court allowed the appeal, emphasizing the importance of a fair and proper consideration of waiver of pre-deposit applications by the Tribunal.