2014 (8) TMI 852 - HC - Central Excise

Maintainability of appeal - Delay caused in making pre deposit - Held that - Appellant submitted that the amount of ₹ 5 lacs as directed by the Tribunal vide order dated 24.2.2012 as pre-deposit for hearing of the appeal was deposited on 13/14.5.2013. According to the learned counsel, the delay had occurred due to the facts and circumstances noticed hereinabove. It was urged that in the interest of justice, delay in deposit of ₹ 5 lacs be condoned as in the case of the company the appeal is fixed for final hearing before the Tribunal - impugned order dated 21.4.2014 is set aside and the delay, if any, in depositing the sum of ₹ 5 lacs as directed by the Tribunal vide order dated 24.2.2012 is condoned - Decided in favour of assessee.

Summary

Issues:
1. Compliance with stay order
2. Dismissal of appeal despite interim stay order
3. Delay in depositing pre-deposit amount

Compliance with stay order: The appellant, a Director of a company, was issued a show cause notice for penalty under Cenvat Credit Rules. The Tribunal imposed a penalty, which was later reduced. The appellant filed a writ petition against the order requiring a deposit for hearing the appeal. The Court granted interim stay but later dismissed the writ petition. The appellant deposited the required amount after delays. The Tribunal dismissed the appeal for failure to deposit within the stipulated period. The appellant sought condonation of delay, arguing it was due to circumstances. The Court allowed the appeal, setting aside the impugned order, and condoned the delay in deposit.

Dismissal of appeal despite interim stay order: The Tribunal initially required a deposit for hearing the appeal. The appellant filed a writ petition challenging this requirement, which was dismissed with liberty to file an appeal. The appellant deposited the amount after delays, but the Tribunal still dismissed the appeal for non-compliance within the stipulated period. The appellant sought condonation of delay, which was granted by the Court. The Court set aside the impugned order and directed the Tribunal to hear the appeal on merits.

Delay in depositing pre-deposit amount: The Tribunal had directed the appellant to deposit a specific amount as a pre-condition for hearing the appeal. The appellant deposited the amount after delays, leading to the dismissal of the appeal by the Tribunal. The appellant requested condonation of the delay, attributing it to circumstances. The Court allowed the appeal, setting aside the Tribunal's order, and condoned the delay in deposit. The Tribunal was instructed to proceed with hearing the appeal on its merits in accordance with the law.