2018 (3) TMI 1425 - HC - Central Excise

Pre-deposit - amendment to section 35 of the Central Excise Act - Held that - considering the difficulties shown, we extend the time for depositing the amount as directed by the CESTAT - We extend the time to deposit the amount as directed by the CESTAT under the impugned order by six weeks from today. In case, the appellants deposit the amount within six weeks from today the order dismissing the appeals shall stand set aside - appeal disposed off.

Summary

Issues:
1. Appellant challenging CESTAT order for predeposit.
2. Appellant's units closed down, seeking relief from predeposit.
3. CESTAT directing deposit of specific amounts.
4. High Court's decision on CESTAT's order.

Analysis:
1. The appellant contested the CESTAT order requiring predeposit, arguing that the duty amount was already paid and the amendment to section 35 of the Central Excise Act should not apply retroactively. The appellant's advocate emphasized that the units were closed, deeming the predeposit condition harsh. The High Court noted the appellant's strong case on merits but upheld CESTAT's discretion in directing the deposit.

2. The appellant's advocate highlighted the closure of the units and the perceived harshness of the predeposit condition. Despite the appellant's plea and the assertion of a strong case on merits, the High Court acknowledged the CESTAT's authority in directing the deposit and the consequences of non-compliance leading to dismissal of appeals.

3. The CESTAT, as supported by the respondent's advocate, directed the appellants to deposit specific amounts, exercising discretion in a reasonable manner. The High Court, upon reviewing the order, found the CESTAT's exercise of discretion appropriate and declined to interfere with the orders passed in Central Excise Appeal No. 70/2015 and No. 71/2015.

4. The High Court, after considering the submissions and the CESTAT's exercise of discretion, decided not to interfere with the orders. However, in light of the difficulties presented, the Court extended the time for depositing the directed amounts by six weeks. Failure to comply with this extended timeline would result in the dismissal of appeals. The High Court disposed of the appeals and associated civil applications, with no costs imposed on either party.