2009 (2) TMI 221 - HC - Central Excise

Summary

Issues involved: Challenge to order of Customs, Excise and Service Tax Appellate Tribunal, application for withdrawal of appeals to approach Settlement Commission, rejection of application by Settlement Commission, restoration of appeals before tribunal.

Challenge to Tribunal Order: The petitioners challenged an order passed by the Customs, Excise and Service Tax Appellate Tribunal, confirming a demand and imposing penalties. The petitioners filed appeals, but later sought withdrawal to approach the Settlement Commission u/s 35PA of the Central Excise Act, 1944. The Settlement Commission rejected the application due to non-cooperation, leading to dismissal of appeals. Subsequently, the petitioners filed applications for restoration of appeals before the tribunal, which were also dismissed.

Court's Decision: The High Court, after hearing both parties, noted that the appeals were originally filed in time. Despite a lapse in moving the tribunal after the Settlement Commission's final order, the court, in the interest of justice, decided to give the petitioners an opportunity to challenge the order-in-original. Consequently, the impugned order was set aside in both writ petitions, and the appeals were restored with a condition that the petitioners pay costs within two weeks for restoration of the appeals.

Conclusion: The High Court allowed the restoration of appeals, emphasizing the importance of timely filing and the interest of justice. The petitioners were directed to pay costs for restoration, ensuring compliance with the conditions set by the court.