2005 (2) TMI 154 - HC - Central Excise

Summary

Issues:
Petition to quash order for pre-deposit of duty and penalty.

Analysis:
The petitioner appealed against an order confirming a show cause notice for duty and penalty. The petitioner requested waiver of pre-deposit and stay of recovery, which was initially rejected. The petitioner then filed a writ petition, which was allowed by the Court directing reconsideration by the Appellate Authority. Despite this, the respondent directed the petitioner to deposit 50% of the penalty. The petitioner argued for waiver citing precedents where sick units under BIFR were granted such relief. The respondent contended that the deposit was reduced due to financial hardship. The Court noted that the respondent did not consider the Tribunal judgments stating that sick companies under BIFR are entitled to waiver. Consequently, the Court quashed the order, holding the petitioner entitled to waiver without pre-deposit for the appeal hearing. Respondent was directed to hear the appeal within three months without insisting on pre-deposit conditions. The rule was made absolute with no costs awarded.