2008 (2) TMI 68 - HC - Central Excise

Application for modification of stay order was rejected - tribunal s inherent power of modification relevant orders though available were not placed before the Tribunal - Tribunal is vested with the power to consider documents of quasi judicial nature (which were available but not produced) even at the stage of variation of the order - production of documents in the possession of the petitioners does not amount to change in the circumstances Tribunal is directed to consider the documents

Summary

Issues:
- Application for waiver of pre-deposit by the appellants before CESTAT.
- Rejection of the application for modification by the Tribunal.
- Consideration of documents by the Tribunal for modification of the order.

Analysis:
1. The petitioners, who are the appellants before CESTAT, had applied for a waiver of pre-deposit as consignors. However, their application was rejected by the Tribunal, which called for a deposit of Rs.1,20,00,000. The Tribunal, citing previous judgments, noted that cases like these usually warrant unconditional stay of waiver of pre-deposit. The Tribunal found that the petitioners did not advance the argument of inconsistent stand taken by the A.O., as per the judgment in Baron International Ltd. The Tribunal rejected the modification application based on the lack of grounds arising from a change in circumstances.

2. The petitioners argued that in a similar situation where they were consignors, the A.O. had treated them as consignees. They claimed that relevant orders supporting their case were not presented before the Tribunal. The High Court acknowledged that the Tribunal could consider documents of quasi-judicial nature, even if not initially produced, during the variation of the order. The Court emphasized that technicalities should not hinder justice, and the Tribunal has inherent power to consider such documents to ensure fairness. Consequently, the High Court set aside the order concerning the petitioners and directed the Tribunal to review the documents provided by the petitioners for the modification of the pre-deposit order in accordance with the law. The rule was made absolute with no order as to costs.