1995 (5) TMI 40 - HC - Central Excise

Summary

Issues:
Challenge to order of Customs, Excise and Gold (Control) Appellate Tribunal regarding deposit of duty and penalty under Section 35F of Central Excises and Salt Act, 1944.

Detailed Analysis:

1. Challenge to Tribunal's Order:
The petitioner challenged an order by the Customs, Excise and Gold (Control) Appellate Tribunal directing them to deposit a substantial amount towards duty and penalty. The Tribunal had partially waived the deposit condition, requiring the petitioner to deposit a sum of Rs. 2,20,00,000/-.

2. Legal Provisions:
Under Section 35F of the Central Excises and Salt Act, 1944, an appellant must deposit the duty demanded or penalty levied unless the appellate authority deems it causing undue hardship, allowing for a waiver under the proviso to Section 35F.

3. Petitioner's Contentions:
The petitioner contended that the demand was unjustified, citing financial losses as a reason for being unable to deposit the amounts levied. The Tribunal acknowledged the financial hardship but only partially waived the deposit requirement.

4. Court's Analysis:
The Court examined the petitioner's financial status and the demands raised against them, noting the significant disparity between the amount required to be deposited and the petitioner's financial capacity. It emphasized the need for a balance between revenue interests and the appellant's right to appeal, stating that the deposit condition should not hinder the appeal process.

5. Judgment:
The Court allowed the writ petition, setting aside the Tribunal's order and fully waiving the deposit condition for the petitioner's appeal. It directed the Tribunal to expedite the appeal process without requiring the deposit of Rs. 2,20,00,000/-. The judgment aimed to safeguard the appellant's right to appeal while ensuring the interests of revenue through a prompt appeal resolution.

This detailed analysis outlines the key aspects of the judgment, including the legal provisions, petitioner's contentions, court's analysis, and the final judgment rendered by the High Court of Judicature at Allahabad.