2019 (3) TMI 183 - HC - Central Excise

Attachment of property - Recovery of amount of Government dues payable by the petitioner - Held that - This court is of the view that since the petitioner is ready and willing to deposit an amount of ₹ 40,00,000/- in cash as well as furnish sufficient bank guarantee to secure the interest of the revenue in the above proceedings, the request made by the learned advocate for the petitioner requires to be accepted - the petition succeeds and is accordingly allowed in part.

Summary

Issues Involved:
Challenge to notice issued under Customs Rules for recovery of dues; Noncompliance with pre-deposit orders leading to dismissal of appeal; Request for opportunity to be heard; Dispute over amount payable; Petitioner's proposal for payment; Respondent's insistence on full cash deposit; Court's decision on deposit and bank guarantees.

Analysis:

1. The petitioner challenged a notice issued by the Assistant Commissioner under Customs Rules for recovery of government dues. The notice required payment of a specific amount with interest and sought to attach the petitioner's property to prevent its transfer.

2. The petitioner's appeal before the Tribunal in 2004 required a deposit, but due to non-receipt of the order copy, compliance was not possible, leading to dismissal in 2005. Similarly, in 2014, another deposit order was not complied with, and the petitioner sought an opportunity to be heard in 2018.

3. The respondents claimed the petitioner owed a substantial amount, including interest, which was disputed by the petitioner. The petitioner proposed a payment plan involving a cash deposit and bank guarantees to secure the revenue's interest in the ongoing proceedings.

4. The court considered the petitioner's willingness to deposit a significant amount in cash and provide bank guarantees. The respondent insisted on full cash deposit or two bank guarantees, one for each pending proceeding.

5. The court decided in favor of the petitioner's proposal, directing a cash deposit towards principal and penalty, along with two bank guarantees for interest. Upon compliance, the attachment on the petitioner's property was to be released, resolving the dispute effectively.