2008 (12) TMI 379 - HC - Central Excise

Stay - Petitioner challenge the order of Tribunal for directing pre-deposit of 25% duty demanded and 10% of penalty imposed. Held that- petitioner being sick industrial undertaking is relevant factor. Tribunal having order deposit of mere 25% of duty and 10% of penalty, case not made out for interference. Petition dismissed.

Summary

Issues:
Challenge to Order of Customs, Excise & Service Tax Appellate Tribunal - Deposit of Duty and Penalty - Sick Industrial Undertaking - Request for Extension of Time for Deposit

Analysis:
The petitioner, a sick industrial undertaking, challenged the Order dated 8 August, 2008 made by the Customs, Excise & Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad. The Tribunal entertained the appeals on the condition that the petitioner deposits 25% of the duty involved and 10% of the penalty imposed within eight weeks from the date of the order.

The petitioner's counsel admitted that the petitioner had not yet deposited the directed amount and argued that as a sick industrial undertaking with a rehabilitation scheme under contemplation, the petitioner should not be required to deposit any amount as a condition for appealing. The High Court acknowledged the relevance of the petitioner's status as a sick industrial company but found no grounds for interference since the Tribunal had only ordered a deposit of 25% of the custom duty and 10% of the penalty.

The petition was dismissed, but the Court, at the request of the petitioner's advocate, allowed the petitioner to request an extension for the deposit on the next hearing before the Tribunal. This decision provides an opportunity for the petitioner to seek additional time for fulfilling the deposit requirement set by the Tribunal, considering the circumstances of being a sick industrial undertaking.