1994 (10) TMI 68 - HC - Central Excise

Summary

Issues:
1. Review of earlier order directing deposit of 50% of demanded amount and security of immovable property for remaining 50% for appeal.
2. Dispute over duty on imported materials by Customs Department.
3. Challenge of rejection of stay application for pre-deposit by CEGAT.
4. Interpretation of Section 129E of the Customs Act regarding deposit of duty pending appeal.
5. Failure to notice provision leading to denial of statutory right to approach Appellate Authority.
6. Recall of earlier order and setting aside CEGAT order for non-compliance.

The judgment involved a review of an earlier order directing the petitioner to deposit 50% of the demanded amount and provide security of immovable property for the remaining 50% within 2 months for the appeal. The petitioner's consignment was detained by the Customs Department, leading to a dispute over the nature of the imported materials. The Customs authorities claimed 100% duty was leviable, while the petitioner argued for no duty based on technical collaboration documents. The petitioner challenged the rejection of a stay application for pre-deposit by CEGAT, citing Section 129E of the Customs Act which exempts deposit if goods are in Customs custody. The court noted that the goods were in Customs custody, thus pre-deposit was unnecessary. The court acknowledged the oversight in not considering this provision earlier, leading to the denial of the petitioner's right to appeal. Consequently, the court recalled the earlier order and set aside the CEGAT order for non-compliance, directing the Appellate Tribunal to revive the appeal and hear it on merits.