2017 (4) TMI 68 - HC - Central Excise

Maintainability of appeal - appeal dismissed for non-payment of interest - Held that - the appellant has deposited the tax amount, however, the interest amount is not deposited though the appellant has agreed to deposit the same within four months from the date of application. The appellant has also averred the ground about financial constraints - It would not be appropriate to nonsuit the appellant by default - Considering the ground of financial stringencies put forth by the appellant, we are inclined to grant one more opportunity to the appellant to deposit entire interest - appeal allowed - decided partly in favor of appellant.

Summary

Issues:
Appeal dismissed for nonpayment of interest amount.

Analysis:
The appellant was aggrieved by the order dismissing the appeal due to nonpayment of interest amount, despite depositing the initial sum as per the Tribunal's order. The appellant's counsel argued that the appeal could have been decided on its merits, considering the weak financial position of the appellant. The respondent's counsel contended that the Tribunal had directed the appellant to deposit the tax amount along with interest, and the impugned order was justified. The Court noted that while the tax amount was deposited, the interest amount remained outstanding, with the appellant citing financial constraints.

The Court acknowledged that the Tribunal had initially granted a stay on the penalty and balance amount subject to the payment of a specified sum. Subsequently, the appellant sought additional time to deposit the tax amount along with interest, mentioning financial difficulties. In light of these circumstances, the Court decided to quash the impugned orders on the condition that the appellant deposits the entire interest amount within eight weeks. Emphasizing that the deposit of interest was a crucial condition, the Court allowed the appeal partly, with directions for the Tribunal to hear and decide the appeal on its merits upon full payment of the interest amount within the specified timeframe. No costs were awarded in the matter.