2004 (3) TMI 92 - HC - Central Excise

Summary

Issues: Challenge to duty demand, Financial hardship, Nature of imported items

In this case, the petitioner challenged an order by the Commissioner of Central Excise confirming a duty demand on certain products. The Tribunal required the petitioner to pre-deposit a significant amount towards duty for appealing the decision. The petitioner argued that a substantial portion of the duty demand was time-barred, and the pre-deposit amount was excessive. The petitioner also cited financial difficulties due to incurred losses. Additionally, the petitioner contended that the imported items were consumables, not raw materials, and thus eligible for a concessional rate of duty. The court acknowledged the financial hardship and the merits of the petitioner's arguments, leading to a modification of the pre-deposit requirement. The court ordered the petitioner to pre-deposit a reduced amount of Rs. 25 lakhs and provide a bank guarantee for the same amount within four weeks. The court found in favor of the petitioner, considering the circumstances and modifying the initial order accordingly.