2014 (4) TMI 986 - HC - Central Excise

Waiver of pre deposit - Cenvat credit - allegation of non receipt of inputs - bar of limitation - Held that - issues have to be gone into in appeal and since the appeal was dismissed only on the ground that it was barred by time, we are of the view that ends of justice be served in waiving of the pre-deposit of duty up to 50 per cent - Conditional stay granted.

Summary

Issues:
1. Appeal under Section 35G of Central Excise Act, 1944 against judgment and order of Customs, Excise & Service Tax Appellate Tribunal.
2. Dismissal of appeal as barred by time by Commissioner (Appeals).
3. Dispute regarding service on the appellant and utilization of Cenvat credit.
4. Waiver of pre-deposit of interest and penalty by the Tribunal.
5. Recognition of notice pasted on factory premises as proper mode under the Rules.

Analysis:

1. The judgment pertains to an appeal filed under Section 35G of the Central Excise Act, 1944 against the decision of the Customs, Excise & Service Tax Appellate Tribunal. The Tribunal had directed the appellant to deposit the entire duty amount within eight weeks, with the waiver of pre-deposit of interest and penalty, and staying the recovery.

2. The appellant contended that the Commissioner (Appeals) had dismissed the appeal as time-barred. The issue of whether the appeal was filed within the stipulated time was yet to be determined. The appellant disputed the findings related to service on them and the incorrect utilization of Cenvat credit, asserting that the allegations of not receiving manufactured goods were inaccurate.

3. The respondent argued that the appeal was rightfully dismissed as time-barred since the notice was affixed on the factory premises, deemed proper under the Rules. The Tribunal, considering the circumstances and the pending issues for adjudication, decided to waive 50% of the pre-deposit of duty to serve the ends of justice.

4. Consequently, the Tribunal ordered the appellant to deposit 50% of the entire duty within four weeks to avail the waiver of pre-deposit of interest and penalty, with recovery stayed. It was emphasized that upon depositing the specified amount, the appellate authority must promptly proceed to decide the appeal of the appellant.

5. The judgment concluded with the disposal of the appeal, highlighting the necessity for the expeditious resolution of the appellant's case by the appellate authority. The decision aimed to balance the interests of both parties while ensuring a fair and efficient adjudication process in compliance with the applicable legal provisions and principles.