1994 (2) TMI 152 - AT - Central Excise

Summary

Issues:
Prayer for modification of an interim order and stay order, consideration of financial constraints, justification for modifying the order, exercising inherent powers for extension of time, compliance with payment terms, furnishing a bank guarantee, consequences of non-compliance with payment terms.

Analysis:
The appellants sought modification of an interim order and a stay order, requesting the waiver of pre-deposit of duty and penalty without cash deposit or bank guarantee. The respondent objected, citing no change in circumstances and lack of deposits or guarantees. The Tribunal considered the facts, referencing a previous case on economic offenses in international trade involving under-invoicing and over-invoicing. The Tribunal noted that selling goods below cost price lacks justification, deciding not to modify the order but allowing an extension of time based on inherent powers and legal precedents.

The Tribunal referred to the Supreme Court decisions in the cases of ITO v. M.K. Mohammed Kunhi and Union of India v. Paras Laminates (P) Ltd. to support its exercise of powers for time extension. It emphasized the Tribunal's judicial powers within defined jurisdiction, including incidental and ancillary powers necessary for effective execution. The Tribunal ordered the appellants to deposit Rs. 35 lakhs in two instalments and furnish a bank guarantee of Rs. 15 lakhs, with specific deadlines for compliance. Non-compliance would result in automatic vacation of the order and potential dismissal of the appeal for violating statutory provisions.

To ensure compliance, the Tribunal scheduled a mention of the matter for early April 1994. The appellants were instructed to report their compliance with the payment and guarantee terms to the Registry within seven days of the respective deadlines. The Tribunal warned that default in payment would lead to the order's automatic vacation and possible dismissal of the appeal without further notice. Ultimately, the miscellaneous application was disposed of based on the specified terms, emphasizing the importance of meeting the payment obligations and furnishing the required bank guarantee.