2002 (7) TMI 104 - SC - Central Excise

Summary

Issues:
1. Whether the High Court's order directing the appellant to deposit 25% of the duty amount as pre-deposit in multiple appeals was justified.
2. Whether the Supreme Court should interfere in the discretionary order of declining to grant waiver of pre-deposit.
3. Whether the amount already deposited by the appellant should be considered as sufficient compliance for pre-deposit in the appeals.

Detailed Analysis:
1. The appeal stemmed from a final order by the High Court directing the appellant to deposit 25% of the duty amount, the subject of multiple show cause notices, as pre-deposit. The appellant had challenged this order, arguing that the pre-deposit amount should be based on the specific show cause notice dated May 2, 1994, and not on all twenty-two show cause notices. The Supreme Court noted that the third respondent confirmed the demand for all twenty-two cases, even though the initial notice was for a specific period. The Court held that the pre-deposit amount should not be based on all twenty-two appeals but should consider the amount already deposited by the appellant, which was deemed sufficient compliance. Consequently, the High Court's order was modified, and the fifth respondent was directed to proceed with the appeals in accordance with the law.

2. The Supreme Court addressed the issue of interfering in discretionary orders regarding waiver of pre-deposit. It stated that such orders are generally not interfered with unless there is a clear case of improper exercise of discretion leading to injustice. In this case, the Court found that due to the broad confirmation of demands across all twenty-two cases, the pre-deposit amount should be reconsidered. By considering the amount already deposited by the appellant, the Court ensured that the interests of justice were upheld. Therefore, the Court modified the High Court's order to rectify the improper exercise of discretion and grant appropriate relief to the appellant.

3. The Court emphasized that the appellant had already deposited a sum pursuant to an earlier order, which represented the amount in demand from the specific show cause notice dated May 2, 1994. This amount was deemed adequate for compliance with the pre-deposit requirement in all the appeals. By recognizing this deposit as sufficient, the Court ensured that the ends of justice were met without burdening the appellant with additional pre-deposit requirements. Consequently, the Court allowed the appeal, directing the fifth respondent to proceed with the appeals without being influenced by the Court's observations in the order.