2019 (7) TMI 481 - AT - Central Excise

Maintainability of appeal - non-prosecution of the case - recovery of wrongly availed cenvat credit alongwith the interest and the appropriate penalties - HELD THAT - The appellant is not interested at all in pursuing their case. The amount of duty involved herein is more than 3.5 Crores. In these circumstances, we find no reason to accept the today s request of adjournment. Appeal dismissed for non-prosecution.

Summary

Issues:
1. Delay in disposal of appeal
2. Failure to diligently pursue the case
3. Request for adjournment

Analysis:
The appellant, engaged in the manufacture of medicaments and registered with the Excise Department, faced a show cause notice for wrongly availed cenvat credit after a search in their factory premises. The original adjudicating authority confirmed the proposal for recovery, leading to the appellant filing an appeal in 2016. However, the appellant did not actively pursue the appeal, resulting in its dismissal in 2017 as they chose not to appear before the Tribunal. Subsequently, a Misc. Application was filed for restoration, which was granted in 2018. Despite multiple adjournments, mostly at the appellant's request, the case was not diligently pursued. The appellant's delaying strategies were evident, including approaching the High Court instead of replying to the show cause notice and continuously seeking adjournments without submitting any representations. The Tribunal's order for restoration in 2018 aimed to provide a fair opportunity for the appellant to present their case properly, but the appellant failed to take diligent steps and continued to seek adjournments.

The Tribunal noted that the appellant showed disinterest in pursuing the case, especially considering the significant amount of duty involved. Citing a relevant case law, the Tribunal emphasized that lack of grounds for adjournment could lead to dismissal for non-prosecution. Despite the appellant's request for another adjournment during the final hearing, the Tribunal, based on the observations of the appellant's conduct, decided to dismiss the appeal for non-prosecution. The Tribunal's decision was influenced by the appellant's consistent delaying tactics, lack of diligence in pursuing the case, and the substantial amount of duty involved. The dismissal was in line with the principle that applications for restoration should not be entertained when adjournments are sought without valid grounds. The appeal was ultimately dismissed for non-prosecution, emphasizing the importance of actively engaging in legal proceedings and diligently pursuing one's case to ensure a fair hearing and resolution.