2006 (4) TMI 175 - HC - Central Excise

Summary

Issues:
Impugning orders of the Customs, Excise and Service Tax Appellate Tribunal for waiver of pre-deposit, jurisdiction of the Tribunal in considering waiver application, interpretation of Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, non-compliance leading to dismissal of appeals, application for modification of order.

Analysis:
The petitioner sought to challenge two orders passed by the Tribunal regarding the waiver of pre-deposit. The Tribunal partially granted the application by directing the petitioner to deposit a specific amount towards duty, which the petitioner failed to comply with, leading to the dismissal of the appeals for non-compliance. The petitioner contended that being a sick industrial company pending before the BIFR, undue hardship would be caused by the deposit requirement. The Tribunal was criticized for not addressing this aspect in the initial order before dismissing the appeals.

In response, the revenue's counsel referred to a Supreme Court judgment stating that the payment of pre-deposit under Section 35F of the Central Excise Act, 1944 does not fall under the relief categories of Section 22 of the Act of 1985, hence not entitling the petitioner to a waiver based solely on being a sick industrial company. The Tribunal's decision to ask for a partial deposit considering the financial hardship of the company was deemed appropriate in light of the legal provisions and precedents.

The Tribunal provided a deadline for the deposit, which the petitioner failed to meet, leading to the dismissal of the appeals. The Court noted that any application for modification should have been pursued before the appeal dismissal. Consequently, the Court found the writ petition unsustainable and dismissed it, upholding the Tribunal's decisions based on legal interpretations and procedural compliance.