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2016 (4) TMI 837 - HC - Central ExciseRestoration of appeal pending before CESTAT - Respondent submitted that it has deposited ₹ 50,00,000/- and has accounted the remaining ₹ 50,00,000/- towards the CENVAT credit which is due to the first respondent - Held that - provided the first respondent remits the balance amount of ₹ 50,00,000/- (Rupees fifty lakhs only) which is still due in terms of Ext.P5 judgment by making payments of ₹ 25,00,000/- (Rupees twenty five lakhs only) within a period of three weeks from today and the remaining amount of ₹ 25,00,000/- (Rupees twenty five lakhs only) within a further period of three weeks. The time frame fixed herein shall be treated as peremptory. If remittances as directed herein are not made, the Tribunal would not be obliged to take up the restoration application. Further proceedings on the basis of Ext.P9 notice will be kept in abeyance, initially for a period of three weeks awaiting deposit of ₹ 25,00,000/- as aforesaid, and if such amount is deposited, the same will be kept in abeyance for a further period of three weeks awaiting further deposit of ₹ 25,00,000/-. If both such amounts are deposited, Ext.P9 will stand deferred and would thereafter be guided by any decision that the CESTAT may issue on Ext.P7 restoration application or on the appeal, if it is, ultimately, restored by the CESTAT. - Appeal disposed of
Issues:
Challenge to the notice restraining operation of a Bank account, appeal against reliefs granted by the learned single Judge, waiver order by CESTAT and subsequent appeals, restoration application before CESTAT, enforcement of Ext.P9 notice, legal basis of impugned judgment. Analysis: 1. The appeal was filed against the judgment in a writ petition challenging the notice restraining the operation of a Bank account of the first respondent. The Department appealed against the reliefs granted by the learned single Judge. The first respondent had filed an appeal before the CESTAT seeking a pre-deposit waiver order, which was partially granted. Subsequent appeals were made to reduce the deposit amount. The first respondent failed to comply with the orders, leading to the dismissal of the appeal by CESTAT and initiation of further proceedings by the Department, resulting in Ext.P9 notice for appropriation of funds from the Bank account. 2. The learned Senior standing counsel for the CBEC argued that the directions of the learned single Judge interfered with the finality of previous court orders and lacked legal foundation. On the other hand, the Senior counsel for the first respondent argued that the client had already deposited a portion of the required amount and adjusted the rest against CENVAT credit due, justifying the directions of the single Judge. 3. The High Court analyzed the previous judgments and orders, particularly Ext.P5 judgment by the Division Bench, which considered the availment of CENVAT credit. The Court rejected the argument that the first respondent had fulfilled the payment requirements, emphasizing the need for the remaining deposit as per Ext.P5 judgment and the Supreme Court order. The Court highlighted the importance of complying with the previous orders before seeking leniency or restoration of the appeal. 4. The Court set aside the impugned judgment and directed the CESTAT to consider the restoration application in accordance with the law. However, the Court made it clear that the restoration application would only be entertained if the first respondent remitted the balance amount due as per Ext.P5 judgment within the specified time frame. The Court emphasized the peremptory nature of the time frame set for the payments and linked the further proceedings on Ext.P9 notice to the deposit of the specified amounts, indicating that Ext.P9 enforcement would be deferred based on the CESTAT's decision on the restoration application or the appeal's restoration. 5. In conclusion, the High Court's judgment clarified the legal requirements for the restoration of the appeal before CESTAT and the enforcement of the Ext.P9 notice, emphasizing the need for compliance with previous court orders and timely payments to proceed with the legal remedies available to the first respondent. This detailed analysis covers the issues involved in the legal judgment comprehensively, highlighting the arguments presented by both parties and the Court's reasoning leading to the final decision.
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