2015 (10) TMI 851 - HC - Central Excise

Waiver of pre deposit - Held that - Tribunal had addressed the issues raised on merits touching the assessments, however that, it failed to note that the appellant had also the plea that its financial condition is not sound enough to deposit the amount involved and the irreparable harm will be caused to the appellant, if the amounts are ordered to be deposited - ends of justice would be satisfied if the amount of pre-deposit is trimmed down - Partial stay granted.

Summary

Issues:
Appeal against CESTAT order of refusal to waive pre-deposit.

Analysis:
The High Court of Kerala heard an appeal against the order of the CESTAT, which had refused to waive the pre-deposit amount as requested by the appellant. The CESTAT had directed the appellant to remit Rs. 1 crore as pre-deposit, leading to the filing of this appeal. An interim order was granted by the High Court, staying the operation of the CESTAT order on the condition of depositing Rs. 25 lakhs. The Court examined the pleadings in the application for stay and noted that the Tribunal had addressed the merit-based issues related to assessments but had failed to consider the appellant's plea regarding its unsound financial condition and the potential harm from depositing the required amount.

Upon considering all the facts and circumstances, the High Court concluded that justice would be served by reducing the pre-deposit amount to Rs. 50 lakhs. This meant that the appellant had to remit an additional Rs. 25 lakhs on top of the amount already deposited as per the interim order. The Court set a three-week deadline for remitting the balance amount. The impugned order was modified accordingly, and upon the deposit of the reduced amount, the CESTAT was directed to proceed with hearing the appeal on its merits after giving both parties an opportunity to present their case. The appeal was ordered in favor of the appellant with the modified pre-deposit amount.