2004 (10) TMI 102 - HC - Central Excise

Summary

Issues:
1. Imposition of excise duty, penalty, and confiscation of goods under the Central Excise Act.
2. Application for waiver of pre-deposit before the CEGAT.
3. Second round of proceedings initiated despite previous CEGAT decision.
4. Appeal before the Commissioner (Appeals) and CESTAT regarding financial hardship.
5. Challenge to CESTAT order for pre-deposit in High Court under Article 227.

Analysis:
1. The petitioner received a show cause notice for excise duty imposition, penalty, and goods confiscation. The Collector confirmed the demand and imposed penalties. The CEGAT granted a waiver of pre-deposit due to financial hardship. The CEGAT later set aside the original order for reconsideration. Despite this, a second round of proceedings was initiated, resulting in a repeated imposition of duty and penalties. The petitioner appealed to the Commissioner (Appeals) and then to the CESTAT, citing financial hardship.

2. The CESTAT ordered the petitioner to pay a pre-deposit of Rs. 3 lacs, which was challenged in the High Court under Article 227. The Standing Counsel argued against interference, citing a previous judgment. However, the petitioner contended that the CESTAT failed to consider their financial condition, which was a jurisdictional error. The petitioner highlighted the earlier waiver of pre-deposit by the CEGAT due to financial difficulties, which was not considered by the CESTAT in the subsequent proceedings.

3. The High Court allowed the petition, quashing the CESTAT order and remanding the matter for reconsideration. The Court emphasized the importance of considering the petitioner's poor financial condition while deciding on the waiver of pre-deposit. The Court directed the CESTAT to pass a fresh order in accordance with the law, taking into account the financial hardship of the petitioner. The rule was made absolute with no order as to costs.