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Issues involved: Challenge to the validity of orders passed by Customs Excise and Gold (Control) Appellate Tribunal regarding stay of excise duty and penalty pending appeal; Maintainability of Writ Application under Section 35L of the Central Excise Act, 1944.
Validity of Writ Application: The Writ Application challenged the Tribunal's orders for stay of excise duty and penalty. The respondents argued that the Writ Application was not maintainable as per Section 35L of the Act, contending that appeals should be made to the Supreme Court. However, the Court disagreed, stating that an appeal under Section 35L was applicable to orders related to stay and pre-deposit. Interpretation of Section 35L: The Court analyzed Section 35L(b) of the Act, emphasizing that appeals to the Supreme Court were limited to orders concerning duty rates or goods valuation. The petitioner's counsel argued that the provision did not cover all Tribunal orders, including pre-deposit matters. The Court agreed, noting that the Legislature specified appealable situations to the Supreme Court. Merits of Challenge to Tribunal Orders: Regarding the Tribunal's decision on pre-deposit, the Court highlighted the relevance of a prima facie case in determining undue hardship. It found that the Tribunal had not properly considered factors like unsecured loans and the existence of a prima facie case. The Court emphasized the need for a thorough assessment by the Tribunal on these aspects. Decision and Directions: The Court set aside the Tribunal's orders and instructed a fresh consideration of the stay and pre-deposit requests within two months. It noted the importance of a proper evaluation of the prima facie case and undue hardship factors. As no opposition affidavits were filed, the allegations in the petition were deemed unchallenged, and all parties were directed to comply with the judgment.
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