2013 (7) TMI 502 - HC - Central Excise

Condition for deposit - Appellant prays that as 50% of the amount has been deposited and the appeal is pending adjudication, the impugned order may be modified to the extent that the appeal may be decided after accepting 50% of the amount demanded, on such other terms and conditions as this Court may deem proper - Counsel for the respondents states that he has no objection to the aforementioned prayer, provided a direction is issued that in case the appeal is decided against the appellant, the appellant shall deposit the balance amount within a week of the decision and before availing any other remedy Held that - In case the appeal is decided against the appellant, he shall be bound, as a pre-condition, before availing any other further remedy, to deposit the balance amount within one week of the decision of his appeal. Failure of the petitioner to comply with this direction shall entitle the respondents to initiate proceedings in accordance with law, as well as proceedings under the Contempt of Courts Act.

Summary

Issues:
1. Quashing of order directing deposit under Section 35-F of the Central Excise Act, 1944.
2. Modification of impugned order regarding pre-deposit amount.
3. Conditions for appeal decision and balance amount deposit.

Analysis:

1. The appellant sought quashing of the order dated 8.10.2012, requiring a deposit of Rs.12,34,032 under Section 35-F of the Central Excise Act, 1944. The High Court partly allowed the appeal, considering that the appellant had already deposited 50% of the demanded amount, and modified the order accordingly.

2. The High Court directed that the appeal would be decided on its merits, accepting the amount already deposited by the petitioner as a pre-deposit in accordance with Section 35-F of the Central Excise Act, 1944. The Court further specified that if the appeal is decided against the appellant, they must deposit the balance amount within one week of the decision before availing any further remedy.

3. It was emphasized that failure to comply with the directive to deposit the balance amount within the specified time would empower the respondents to initiate legal proceedings as per the law, including actions under the Contempt of Courts Act. Additionally, the Court mandated that the appeal should be concluded within three months of receiving a certified copy of the order to ensure timely resolution.