1994 (10) TMI 80 - HC - Central Excise

Summary

Issues:
1. Challenge against the order of the Customs, Excise and Gold (Control) Appellate Tribunal regarding deposit of central excise duty.
2. Validity of the demand and penalty imposed by the Collector of Central Excise.
3. Examination of grounds for seeking stay of deposit of duty and penalty pending appeal.
4. Exercise of discretion by the Customs, Excise and Gold (Control) Appellate Tribunal in requiring a deposit before hearing the appeal.
5. Timeliness of filing the petition challenging the tribunal's order.

Analysis:
The High Court of Delhi addressed a petition challenging the Customs, Excise and Gold (Control) Appellate Tribunal's order directing a company to deposit a significant sum towards central excise duty within a specified period. The company, engaged in manufacturing electronic typewriters, faced demands and penalties from the Collector of Central Excise related to the period 1982-85. The Tribunal considered various aspects, including alleged mis-declaration, inclusion of essential components in assessable value, and suppression of production. The company contended that the Collector lacked competence, assessments were provisional, and certain parts should not be included in the typewriters' value. Despite detailed arguments, the Tribunal found the company lacked a prima facie case, leading to the directive for a partial deposit.

Regarding the exercise of discretion by the Tribunal, the High Court examined the statutory provisions mandating deposit pending appeal. It noted that while the law required such deposits, exceptions could be made in cases of undue hardship. The Tribunal's decision to require a specific deposit amount was challenged, but the Court found no jurisdictional error warranting interference. The Court emphasized that the Tribunal's assessment of the company's case did not fall within the scope of writ jurisdiction. The company's arguments regarding excess duty paid and misinterpretation of previous orders were considered but did not persuade the Court to overturn the Tribunal's decision.

Furthermore, the Court criticized the company's delay in filing the petition, noting a pattern of last-minute approaches in similar cases. Despite the delay, the Court granted a brief extension for compliance with the Tribunal's order. Ultimately, the petition was allowed, affirming the Tribunal's directive for the company to deposit a specified amount pending the appeal process.