1999 (10) TMI 207 - AT - Central Excise

Summary

Issues:
Application for waiver of pre-deposit of duty demand based on non-compliance with Stay Order; Violation of principles of natural justice in passing the modification order and dismissing the appeal without notice.

Analysis:
The applicants sought a waiver of pre-deposit of duty demand amounting to Rs. 8,06,57,749. The appeal filed by the applicants was dismissed by the Commissioner of Central Excise (Appeals) due to non-compliance with the Stay Order. The applicants contended that the dismissal was solely based on this non-compliance. They had filed the appeal along with the waiver application, which was rejected by the Commissioner (Appeals) in an order dated 21-12-1998, directing the deposit of the entire duty demand. Subsequently, the applicants applied for modification of the stay order, citing a Tribunal decision in their favor. However, the Superintendent of Central Excise (Appeals) modified the order, requiring the deposit of 30% of the dues without granting a hearing to the applicants.

The Revenue argued that the applicants failed to comply with the stay order even after modification, justifying the impugned order. However, the applicants contended that the modification order was passed in violation of natural justice principles as they were not given a hearing. The Tribunal found merit in the applicants' argument, noting that the modification order and the dismissal of the appeal were both issued without providing a hearing or notice to the applicants. Consequently, the Tribunal ruled that the impugned order violated principles of natural justice.

Given the procedural irregularities and the absence of proper notice or hearing, the Tribunal waived the pre-deposit of duty demand for the appeal hearing. With the consent of both parties, the appeal was taken up for final disposal. The Tribunal set aside the impugned order and remanded the matter to the Commissioner of Central Excise (Appeals), Bhopal. The Commissioner was directed to reconsider the modification application filed by the appellants, ensuring a personal hearing and to dispose of the appeal in accordance with the law. The appeal was allowed by way of remand, emphasizing the importance of following due process and principles of natural justice in such matters.