1993 (11) TMI 57 - HC - Central Excise

Summary

Issues:
- Appeal against order of Customs, Excise and Gold (Control) Appellate Tribunal
- Quashing of order directing pre-deposit of Rs. 20,00,000
- Modification of amount to be deposited

Analysis:
1. The appeal was filed against an order passed by the Customs, Excise and Gold (Control) Appellate Tribunal, Southern Regional Branch at Madras, directing the respondent to pre-deposit a sum of Rs. 20,00,000 pending appeal. The respondent sought to quash this order through a Writ Petition.

2. The learned single Judge upheld the Tribunal's order but modified the pre-deposit amount to Rs. 7,00,000 instead of Rs. 20,00,000. Dissatisfied with this decision, the respondents in the Writ Petition filed an appeal against this modification.

3. The Tribunal had considered various financial aspects of the respondent, noting that the company had a profit of about Rs. 13.9 lakhs but also had debt liabilities amounting to Rs. 40 lakhs. Despite this, the Tribunal directed the respondent to deposit Rs. 20 lakhs based on certain financial details.

4. The High Court analyzed the Tribunal's findings and financial situation of the respondent. It was observed that the amount set aside for depreciation and the debts due to the respondent were not immediately available funds. Considering this, the High Court modified the order and directed the respondent to deposit Rs. 13 lakhs, out of which Rs. 7 lakhs had already been deposited.

5. The High Court further ordered the respondent to deposit the balance of Rs. 6 lakhs and provide security for the remaining Rs. 7 lakhs within one month. The security could be in the form of immovable property with marketable title or a bank guarantee. The Writ Appeal was disposed of with no order as to costs.