2013 (7) TMI 129 - HC - Central Excise

Stay Application- Application for extension of Stay for Pre-deposit - Assesee filed Miscellaneous Application for extension of stay in the matter of waiver of pre-deposit of duty - When the interim stay granted by this Court was vacated, the order of the Tribunal originally passed directing the assessee to make pre-deposit of Rs.5.00 lakhs stood thereon for compliance - Held that - Perplexing to note the course of conduct adopted by the assessee - whatever be the reasons, which compelled the assessee to withdraw the Writ Petition, conscious of the provisions under Section 35C(2A) of the Central Excise Act, the assessee once again moved the Tribunal for an order of extension of stay on the pre-deposit of the duty imposed for, by that time, the order on adjudication had come into force. Tribunal directed to make the pre-deposit. As per this Hon ble High Court - Assessee to deposit the said sum of Rs.5.00 lakhs within a period of four weeks. Against the Assessee.

Summary

Issues:
1. Extension of stay order by Tribunal
2. Pre-deposit of duty under Section 35F of the Central Excise Act, 1944

Extension of Stay Order by Tribunal:
The assessee, a manufacturer of specific devices, claimed exemption from duty which was contested by the revenue leading to show cause notices. The Additional Commissioner of Central Excise initially dropped the proceedings, but the decision was overturned on appeal. The Tribunal then directed the assessee to make a pre-deposit of Rs.5.00 lakhs, which was challenged through a Writ Petition. However, the High Court vacated the interim stay, leading to the Tribunal's decision to list the appeal without requiring the pre-deposit. Subsequently, the Writ Petition was withdrawn by the assessee, leading to the Tribunal rejecting the extension of stay application and directing the pre-deposit of Rs.5.00 lakhs within seven days. The High Court upheld the Tribunal's decision, dismissing the appeal and the associated miscellaneous petition.

Pre-deposit of Duty under Section 35F of the Central Excise Act, 1944:
The Tribunal analyzed the situation where the Writ Petition challenging the pre-deposit order was withdrawn by the assessee, leading to the Tribunal's decision to require the pre-deposit. The Tribunal found that with the withdrawal of the Writ Petition, the assessee had effectively accepted the pre-deposit requirement. The Tribunal concluded that after the duty was quantified post the Writ Petition withdrawal, the earlier order of no pre-deposit had no force. The High Court concurred with the Tribunal's reasoning, finding no error in its decision. The High Court directed the assessee to deposit the specified amount within a specific timeframe for the appeal to be disposed of promptly.

In conclusion, the High Court upheld the Tribunal's decision regarding the extension of stay order and pre-deposit of duty, finding no legal grounds to interfere. The Court granted a specific timeframe for the assessee to comply with the pre-deposit requirement, emphasizing the need for timely resolution of the appeal by the Tribunal post the deposit.