1990 (4) TMI 70 - HC - Central Excise

Summary

Issues:
1. Opportunity of hearing not provided to the petitioner by the Collector of Central Excise (Appeals).
2. Dismissal of appeal for non-compliance with deposit direction.
3. Quashing of orders passed by the Collector (Appeals) due to lack of hearing.
4. Requirement for the Collector of Central Excise (Appeals) to hear the applicant before dismissing an application for stay.

Detailed Analysis:
Issue 1: The petitioner contended that the Collector of Central Excise (Appeals) did not provide an opportunity to appear and represent its case for dispensing with the deposit, as required under Section 35F of the Central Excises and Salt Act, 1944. The Collector only considered the submission for stay without giving a proper hearing, leading to the dismissal of the appeal for non-compliance with the deposit direction. The Court found that the petitioner was not heard, and thus, the orders of the Collector (Appeals) were quashed.

Issue 2: The Court referred to a previous High Court judgment which established the requirement for the Collector of Central Excise (Appeals) to hear the applicant before dismissing an application for stay. The Court noted that since there was a specific averment in this case that the petitioner was not heard, the orders passed by the Collector (Appeals) were set aside.

Issue 3: Consequently, the petition was allowed, directing the Collector (Appeals) to re-hear the stay application and dispose of it after providing an opportunity for the petitioner to be heard. Respondents were instructed not to implement the order passed by respondent No. 3 until the stay application was resolved. The rule was made absolute with no order as to costs.

In conclusion, the judgment highlighted the importance of providing a fair opportunity for parties to be heard before making decisions, especially in matters concerning dispensing with deposits and appeals under the Central Excises and Salt Act, 1944. The Court emphasized the need for procedural fairness and adherence to legal requirements in administrative decisions to safeguard the interests of all parties involved.