1999 (9) TMI 476 - AT - Central Excise

Summary

Issues:
Stay application and appeal arising from order-in-appeal dismissing appeal under Section 35F of the CE Act, 1944 due to non-compliance with interim order for pre-deposit of duty and penalties.

Detailed Analysis:

1. Interim Order and Compliance:
The Collector (Appeals) dismissed the appeal as the appellants failed to comply with the interim order for pre-deposit of duty and penalties. The appellants contended that the interim order was passed ex parte without granting them a hearing opportunity. They argued that the demands were time-barred as the show cause notice was issued for clearances made in 1994-95 and 1996-97. The appellants, manufacturers of Betel Nut powder, denied any suppression of facts and claimed to have disclosed all information to the department.

2. Contentions of the Appellants:
The appellants' counsel highlighted that discrepancies in invoice prices were due to deductions given to parties, not suppression. They pointed out that the department was informed of these issues through various letters and explanations. The appellants emphasized that the Collector (Appeals) did not consider their submissions and passed the final dismissal order without granting them a proper hearing, leading to an alleged injustice.

3. Department's Position:
The learned DR argued that the Additional Collector had found the appellants liable for duty as they had intentionally lowered prices in excise documents compared to actual commercial values. However, the documents and explanations provided by the appellants were not adequately considered in reaching this conclusion.

4. Judgment and Remand:
Upon reviewing the submissions and correspondence between the department and the appellants, the Tribunal found a miscarriage of justice. The Tribunal directed the appellants to pre-deposit a specific amount within two months, following which the appeal would be decided on merits without further pre-deposit requirements. The Tribunal set aside the impugned order and remanded the appeal to the Collector (Appeals) for a detailed discussion on the limitation issues raised by the appellants in light of the documents presented.

This comprehensive analysis of the judgment highlights the key legal arguments, procedural irregularities, and the Tribunal's decision to ensure a fair and just outcome in the case.