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The Supreme Court granted special leave in appeals against the Karnataka High Court's order. The appellants challenged penalties imposed by the Collector of Central Excise. The Tribunal had granted waiver of pre-deposit of penalty subject to certain conditions. The appeals were dismissed for failure to deposit the required amounts. The Court directed specific amounts to be deposited by appellants by June 30, 1998, for their appeals to be allowed. Failure to deposit would result in dismissal of appeals.
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