2008 (7) TMI 21 - HC - Central Excise

Waiver of the pre-deposit of the duty/penalty - petitioner s appeals in the first & second rounds have succeeded and in the three successive adjudication orders the aggregate duty / penalty amount has dropped radically from 5 crores to 1.41 crores - held that the petitioner s appeal before the tribunal ought to be heard on the basis of the deposit of Rs. 1.50 lacs already made by the petitioner - petitioner is undergoing genuine financial hardship - now it is reduced from 1.41 crore to 64 lacs

Summary

Issues:
1. Waiver of pre-deposit of duty/penalty imposed on the petitioner.

Analysis:
The petitioner faced financial difficulties due to duty and penalty of around Rs. 5.00 crores imposed earlier, leading to an appeal and an application for waiver of pre-deposit. The tribunal initially required a deposit of Rs. 15.00 lac and waived the rest for appeal hearing. Subsequently, the pre-deposit amount was reduced to Rs. 1.50 lacs, which the petitioner paid. The tribunal set aside the original order and remanded the matter, resulting in a reduced duty/penalty of Rs. 1.41 crores. Another appeal led to a fresh adjudication order imposing Rs. 64.00 lacs, with the tribunal dismissing the waiver request, requiring the full amount. The petitioner struggled to raise the funds and approached the High Court seeking relief.

The High Court considered the financial hardships faced by the petitioner and the significant reduction in duty/penalty amounts in successive adjudication orders. Acknowledging the genuine financial difficulties, the Court directed the tribunal to hear the appeal based on the Rs. 1.50 lacs already deposited by the petitioner. Emphasizing the substantial drop in the duty/penalty amounts from Rs. 5.00 crores to Rs. 1.41 crores and then to Rs. 64.00 lacs, the Court highlighted the petitioner's successful appeals in the previous rounds. The Court also instructed the tribunal to expedite the appeal process and make a decision within four months to ensure timely resolution of the matter.

In conclusion, the High Court disposed of the writ petition in favor of the petitioner, allowing the appeal to be heard based on the previous deposit made, considering the financial hardships faced and the significant reduction in duty/penalty amounts over successive adjudication orders.