2004 (10) TMI 101 - HC - Central Excise

Summary

Issues involved:
Whether the petitioner should pre-deposit a sum of Rs. 25 lakhs as directed by CESTAT.

Analysis:
The High Court of Gujarat at Ahmedabad considered the issue of whether the petitioner should be required to pre-deposit a sum of Rs. 25 lakhs as directed by the CESTAT. The court noted that an appeal against the original order was pending before the CESTAT and decided not to delve into the merits of the case. However, the court observed that the CESTAT had not properly appreciated the submissions made by the petitioner. In light of this, the court directed the petitioner to deposit a further sum of Rs. 2.50 lakhs by way of pre-deposit before a specified date.

Senior advocate representing the petitioner argued that the petitioner was manufacturing only guar powder, not guar gum, which is not subject to duty under the Central Excise Act, 1944. The court acknowledged this submission and noted that the appeal was pending before the CESTAT. The court referred to a previous judgment delivered by the court in a similar case to emphasize that the petition may not be entertained at this stage.

The court expressed dissatisfaction with the CESTAT's exercise of discretion and failure to provide reasons for rejecting the petitioner's application for exemption from pre-deposit. Consequently, the CESTAT was directed to expedite the disposal of the appeal within three months from the date of the court's order. The court allowed the petition, making the rule absolute with no order as to costs.

Furthermore, the court rejected a request to maintain the status quo, stating that there was no reason to grant such a direction. Direct service of the order was permitted, concluding the judgment.