2006 (5) TMI 48 - AT - Central Excise

Non-compliance with stay order to deposit a sum of Rs. 50 lac even after giving extended time Attachment of property by Bank, Income Tax Dept. and Excise Dept. can never be treated as compliance with order of Tribunal Filing restoration application again and again is therefore rejected

Summary

Issues:
1. Restoration of appeal based on non-compliance of stay order dated 16-1-2003.
2. Repeated applications for restoration without complying with pre-deposit order.
3. Attachment of property by multiple entities and its impact on compliance.

Analysis:

1. The appeal in question was dismissed for non-compliance with the stay order dated 16-1-2003, which required a pre-deposit of a specified amount within a set timeframe. Despite extensions granted, the applicants failed to adhere to this requirement. The dismissal of the appeal was followed by an opportunity for the appellants to deposit the amount within a specified period and apply for restoration. However, the applicants failed to comply with this as well, leading to the finality of the order. Subsequent applications for restoration were made without fulfilling the pre-deposit condition, ultimately resulting in dismissal. The Tribunal emphasized that mere attachment of the factory by various entities did not constitute compliance with the Tribunal's order, highlighting the importance of following procedural requirements for restoration.

2. The Department argued that the applicants had not made any effort to comply with the pre-deposit order, and all previous applications for restoration had been rejected due to non-compliance. This lack of adherence to the Tribunal's directives was a crucial factor in the repeated dismissal of restoration applications. The Tribunal noted that the applicants' actions of filing multiple applications without fulfilling the pre-deposit condition were not acceptable, as compliance with the Tribunal's orders is essential for seeking restoration of an appeal. The failure to meet these requirements led to the rejection of the current application for restoration.

3. The Tribunal considered the submissions from both sides and highlighted the history of non-compliance by the applicants. Despite the attachment of the factory by multiple entities, including the Bank of Maharashtra, Income-tax Department, and Excise Department, the Tribunal reiterated that such attachment did not equate to compliance with the Tribunal's order for pre-deposit. The Tribunal emphasized that the repeated filing of miscellaneous applications without meeting the necessary conditions set by the Tribunal could not be tolerated. Therefore, the application for restoration of the appeal was rejected, underscoring the importance of strict adherence to procedural requirements in legal proceedings.

This detailed analysis of the judgment underscores the significance of compliance with court orders and procedural rules in seeking restoration of appeals, as demonstrated by the Tribunal's decision to reject the application based on the applicants' repeated failure to meet the pre-deposit requirement despite multiple opportunities provided.