2009 (12) TMI 1043 - HC - Central Excise

Summary

Issues involved: The judgment involves a writ petition challenging an order rejecting an application in an appeal related to duty and penalty under Central Excise Act, 1944.

Details of the judgment:

Issue 1: Allegation of failure to utilize imported material for conversion into MS ingots
The petitioner, engaged in the manufacture of Mild steel ingots, availed benefits under specific notifications for import. A show cause notice was issued alleging failure to utilize imported iron scrap for conversion into MS ingots. The 1st respondent confirmed duty, penalty, and interest under relevant sections of the Central Excise Act, 1944, along with personal penalties on the Managing Director and Director of the Company.

Issue 2: Appeal and application for waiver of pre-deposit
The petitioners appealed to the 2nd respondent Tribunal against the order of the 1st respondent and applied for a waiver of pre-deposit of duty and penalty. Despite the counsel's absence due to ill-health, the Tribunal ordered the deposit of the entire duty and a percentage of the penalty as a condition for entertaining the appeal. The petitioner's application for recall of this order was rejected.

Judgment:
Considering the circumstances and the absence of the petitioner's counsel during crucial hearings, the High Court directed the petitioners to deposit 50% of the duty and 10% of the penalty within three weeks. Upon such deposit, the Tribunal was instructed to entertain the appeal and proceed accordingly. Failure to make the deposit would result in the dismissal of the appeal. No costs were awarded in this matter.