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2015 (9) TMI 563 - HC - CustomsImposition of Pre-deposit Condition for hearing Onerous and excessive Appellant contended that Tribunal s condition for hearing of pre-deposit (to extent of 20% of penalty amount), is onerous and excessive Held that - no dispute that merely week after, appeal was filed, notification requiring pre-deposit fixed to tune of 7.5% of determined duty and penalty liability came into force In light of this fact and further circumstance that director made admissions with respect to forgery, Court of opinion that interest of justice would be served if pre-deposit amount is reduced to half instead of 20% Pre-deposit condition shall be deemed to be satisfied if appellant deposits 10% of penalty determined as against it within six weeks Impugned order of CESTAT modified Decided partially in favour of Assesse.
Issues:
Challenge to the onerous and excessive pre-deposit condition set by the Customs Excise and Service Tax Appellate Tribunal (CESTAT). Analysis: The appellant raised concerns regarding the pre-deposit condition imposed by CESTAT, arguing it to be burdensome. The appellant's counsel highlighted a subsequent notification stating that a deposit of 7.5% of the demand would suffice to meet the pre-deposit requirement. On the other hand, the Revenue's counsel contended that, based on the case's facts and the appellant director's statements, no relief was justified. The Court acknowledged that the notification reducing the pre-deposit to 7.5% was issued shortly after the appeal was filed. Considering this, along with the director's admissions of forgery, the Court found it appropriate to reduce the pre-deposit amount to 10% instead of the initial 20%. Consequently, the Court modified the CESTAT's order, deeming the pre-deposit condition met if the appellant deposited 10% of the penalty within six weeks. As a result of the above analysis, the appeals were allowed on the revised terms, and any pending applications were disposed of accordingly. The Court directed the provision of a copy of the order through dasti.
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