2018 (2) TMI 643 - AT - Central Excise

Restoration of appeal - appeal dismissed for non-compliance with pre-deposit - Held that - the appellant M/s Gayatri Gramin Vikas Seva Sangh has already deposited 20% of the duty in dispute. Accordingly, taking the amended provision into consideration, we feel it fit and proper to modify the earlier stay order dated 27.01.2014 by modifying the amount of deposit for stay to ₹ 50,00,000/- which has already been deposited by the appellants during the course of investigation. Appeal restored to their original Nos. which were dismissed by the Tribunal vide order dated 18.06.2014 for non-compliance of the pre-deposit order - application allowed.

Summary

Issues:
1. Restoration of appeals and modification of stay order.
2. Waiver of pre-deposit order.
3. Interpretation of Section 35F of Central Excise Act, 1944.
4. Granting out-of-turn hearing due to factory closure.

Restoration of Appeals and Modification of Stay Order:
The applicants sought restoration of their appeals and modification of the stay order. The Hon'ble Bombay High Court granted liberty for such restoration. Considering the amended Section 35F of the Central Excise Act, 1944, the Tribunal modified the earlier stay order, increasing the deposit amount to ?50,00,000. The appellant had already deposited 20% of the duty in dispute. Additionally, the Tribunal waived the ?1 lakh deposit imposed on the 2nd appellant and restored the appeals to their original numbers, which were previously dismissed for non-compliance with the pre-deposit order.

Waiver of Pre-Deposit Order:
In light of the circumstances and the amended provision of Section 35F, the Tribunal deemed it fit to waive the deposit of ?1 lakh imposed on the 2nd appellant, Shri Bipin G. Joshi. This decision was made alongside the modification of the stay order, reflecting a balanced approach towards the financial obligations of the appellants.

Interpretation of Section 35F of Central Excise Act, 1944:
The Tribunal's decision to modify the earlier stay order was based on a thorough consideration of the facts and circumstances, as well as the amendments in Section 35F of the Central Excise Act, 1944. By taking into account the appellant's deposit and the statutory provisions, the Tribunal adjusted the deposit amount to ?50,00,000, aligning with the legal framework.

Granting Out-of-Turn Hearing Due to Factory Closure:
Recognizing that the appellant's factory had been closed since 2014-15, the Tribunal deemed it appropriate to grant an out-of-turn hearing of the appeals. This decision was made in light of the unique circumstances surrounding the case, ensuring timely adjudication despite the operational challenges faced by the appellant. The Tribunal scheduled the final hearing for 27th February 2018, indicating a proactive approach towards resolving the matter efficiently.