2018 (2) TMI 541 - AT - Central Excise

Restoration of appeal - the Commissioner (Appeals) had rejected the appeal on ground of non compliance of stay order of deposit of duty amount as ordered by him - Held that - the Appellant has now deposited the 25% duty amount as pre-deposit, we hold it to be sufficient for grant of stay and restoration of appeal - the deposit of 25% of the duty amount is sufficient compliance for hearing the appeals on merits and therefore we direct the Commissioner (Appeals) to hear the appeal on merits and pass appropriate order. The matter is remanded back to the learned Commissioner (Appeals) to pass an appropriate order on merits.

Summary

Issues:
1. Compliance with High Court order for restoration of appeal and miscellaneous application.
2. Non-compliance with pre-deposit order leading to rejection of appeal.
3. Dismissal of stay application for non-prosecution.
4. Restoration of appeal and miscellaneous application by the High Court.
5. Consideration of miscellaneous application on its own merits.
6. Sufficiency of 25% duty amount deposit for grant of stay and appeal restoration.
7. Direction for Commissioner (Appeals) to hear the appeal on merits.

Analysis:
The appeal was taken up for disposal following the High Court's order for restoration of appeal and miscellaneous application, subject to a 25% deposit of the duty amount. The Appellant complied with this condition, leading to the joint disposal of the appeal and miscellaneous application. The case involved a show cause notice demanding duty based on electricity consumption and physical verification. The appeal was initially rejected by the Commissioner (Appeals) due to non-compliance with the pre-deposit order. Subsequent attempts for stay application and miscellaneous application were also dismissed for non-prosecution. The Tribunal further dismissed the appeal for non-compliance with the pre-deposit order. However, the High Court intervened and ordered the restoration of the miscellaneous application and appeal, considering the miscellaneous application on its merits.

During the hearing, the Appellant's compliance with the 25% duty amount deposit was deemed sufficient for the grant of stay and the restoration of the appeal. As a result, the Tribunal directed the Commissioner (Appeals) to hear the appeal on its merits and pass an appropriate order. The matter was remanded back to the Commissioner (Appeals) for this purpose. Ultimately, the appeal and stay application were disposed of in accordance with the above terms, with the direction for the Commissioner (Appeals) to proceed with hearing the appeal on its merits.