1997 (7) TMI 374 - AT - Central Excise

Summary

Issues:
1. Dispensation of pre-deposit of demanded duty.
2. Denial of principles of natural justice by the lower authority.
3. Compliance with Section 35F.
4. Opportunity of hearing denied to the appellants.
5. Stay of recovery pending appeal.
6. Appellate authority's duty to allow opportunity of hearing.

Analysis:

The appellants sought dispensation of the pre-deposit of Rs. 4,70,195/- demanded as duty. The Advocate argued that the financial condition had not changed since an earlier Tribunal decision. The lower appellate authority's rejection was based on non-compliance with Section 35F. The Advocate contended that the lower authority's order lacked natural justice principles, citing denial of a personal hearing. The Tribunal found the lower authority's order unsustainable due to the denial of personal hearing, thus denying natural justice.

Regarding compliance with Section 35F, the Tribunal held that the amount already pre-deposited by the appellants should be considered as compliance. Therefore, the pre-deposit of the balance amount was dispensed with, and recovery stayed pending appeal. The Tribunal noted the denial of the opportunity of hearing by the lower authority, emphasizing that the appellants had a right to present their case fully at the final hearing, not just during interlocutory proceedings.

The Tribunal set aside the lower authority's order and remanded the matter for a fresh adjudication, emphasizing the appellants' right to a full hearing. The lower authority's refusal to grant a hearing after a previous interlocutory hearing was deemed a denial of natural justice. The Tribunal highlighted the importance of allowing parties to present their arguments fully during final hearings, as interlocutory proceedings do not represent final pleas. The duty of the appellate authority to ensure parties are given a fair opportunity to be heard was underscored.