2003 (11) TMI 110 - HC - Central Excise

Summary

Issues: Challenge to validity of order for pre-deposit under Section 35F of Central Excise Act, 1944; Apprehension of dismissal of appeal by Commissioner (Appeals) without fair consideration.

In this judgment, the petitioner challenged an order dated 16-10-2003, requiring a pre-deposit of Rs. 50 lakhs under Section 35F of the Central Excise Act, 1944. The petitioner argued the order was unjust and harsh, as they had not collected the tax amount and were not liable to pay it. The respondent, represented by the Central Government Standing Counsel, defended the order. The High Court, after hearing both sides, found the order too harsh and reduced the pre-deposit amount to Rs. 10 lakhs, which the petitioner had already deposited. The Court emphasized that this amount would suffice. The petitioner also expressed concerns that the Commissioner (Appeals) had pre-decided to dismiss the appeal, fearing prejudice due to the prima facie view expressed in the order. The Court reassured the petitioner that the appellate authority would provide a fair hearing, consider all contentions, and decide the appeal impartially, without being influenced by past rejections. The Court modified the impugned order to confirm the pre-deposit of Rs. 10 lakhs, already paid by the petitioner, and allowed the petition, making the rule absolute with no costs incurred. The judgment aimed to ensure a fair consideration of the appeal without prejudice or undue financial burden on the petitioner.