2006 (9) TMI 196 - HC - Central Excise

Summary

Issues:
Challenge against order for pre-deposit of duty and penalty, application for setting aside order, demand raised post-appeal dismissal, interim order restraining coercive steps, absence of counter affidavit by Respondents, appeal hearing without pre-deposit, direction for Tribunal to dispose of appeal within three months.

Analysis:
The Petitioner challenged an order requiring a pre-deposit of Rs. 5 crores and sought to set aside the order dated 16th October, 2002. Despite the dismissal of the appeal, a demand was raised by the Respondents. The Court initially restrained the Respondents from taking coercive steps. Subsequently, noting the absence of a counter affidavit from the Respondents, the case was admitted for final hearing, and the interim order was confirmed. Even after several opportunities, no counter affidavit was filed by the Respondents. The Court considered the long-standing interim order in favor of the Petitioner and the substantial amount involved, leading to a decision to direct the Tribunal to hear the appeal without insisting on a pre-deposit. This decision was made in the interest of justice, as the Revenue had shown a lack of interest in pursuing the matter. The Court directed the Tribunal to dispose of the appeal within three months and before a specified date to ensure timely resolution.

The Court emphasized the importance of expeditiously resolving the appeal filed by the Petitioner, which had been pending for several years. The order directed the restoration of the appeal to the Tribunal's file, with both parties instructed to appear for further directions. Additionally, the Court ordered the Registry to provide a copy of the order to the Registrar of the Tribunal and the respective counsels. The judgment aimed to ensure a fair and timely resolution of the appeal, considering the significant amount involved and the lack of serious pursuit by the Revenue in the matter.