2015 (10) TMI 676 - HC - Central Excise

Waiver of pre deposit - Undue hardship - Held that - No financial hardship was pointed out by the Assessee - There was conflicting expert opinion - The question of limitation was also involved - The question of limitation was also involved - decided against assessee.

Summary

Issues: Tax appeal against the Tribunal's order partly dismissing waiver application for pre-deposit for Assessment Years 2006-07 to 2010-11 and January 2011 to December 2011.

Analysis:
1. Background and Show Cause Notices: The assessee, engaged in manufacturing pig iron and ingots, received show cause notices from the Commissioner, Customs & Central Excise regarding disallowance of Cenvat credit amounting to significant sums for various Assessment Years.

2. Orders and Appeals: Despite the assessee's reply, the Adjudicating Officer confirmed the notices through separate orders. Subsequently, the assessee filed appeals before the Tribunal challenging these orders and also sought a waiver of pre-deposit of the disputed amounts.

3. Difference of Opinion: During the hearing, a disagreement arose between the member judicial and member technical of the Tribunal regarding the pre-deposit amount. The member judicial ordered a deposit of &8377; 30,00,000, while the member technical suggested a higher deposit of &8377; 1.25 crores. This disagreement led to the matter being referred to a third member for resolution.

4. Final Decision: The third member, in a subsequent order, concurred with the member judicial's decision, directing the assessee to deposit &8377; 30,00,000. The High Court, after considering the lack of financial hardship demonstrated by the assessee, conflicting expert opinions, and the involvement of a limitation issue, upheld the Tribunal's decision. The Court found no substantial question of law in the tax appeal and dismissed the case, concluding that it lacked merit.