1991 (11) TMI 59 - HC - Central Excise

Summary

Issues involved: Challenge to order for waiver of pre-deposit of duty and penalty by Collector of Central Excise.

Summary:
The petitioners challenged an order requiring a pre-deposit of Rs. 14,58,530.46 duty and Rs. 1 lakh penalty by the Collector of Central Excise. The Tribunal initially directed a pre-deposit of Rs. 7 lakhs, considering the outstanding amount due to the petitioners. However, the High Court found the Tribunal's approach incorrect as it should have assessed the legality, financial position, and prima facie case of the petitioners before ordering a pre-deposit.

The High Court acknowledged that the issue of duty levy needs to be decided in the main case and noted that previous judgments favored the petitioners on similar issues under the Tamil Nadu General Sales Tax Act. Therefore, the petitioners were found to have a prima facie case. Due to the Tribunal's error in not properly considering these aspects, the High Court ordered the petitioners to deposit Rs. 3 lakhs before the Tribunal for their appeal, to be decided in accordance with the law and with a fair opportunity for the petitioners to present their case.

In conclusion, the writ petition was granted on the condition of the specified deposit, and the Tribunal was instructed to handle the appeal appropriately.