2016 (7) TMI 293 - AT - Central Excise

Restoration of appeal - appeal was dismissed for non-compliance of pre-deposit order - appellant wants to start manufacturing plywoods in full scale but the respondent would not allow them as duty and penalty are due to them. - it also submitted that appellant has a very good case on merits and there is every chance of succeeding in the appeal. - fter considering the submissions of both the parties and after going through the judgments cited above and also keeping in view the peculiar facts and circumstances of the present case, we are of the considered opinion that in the interest of justice, this application needs to be allowed and we allow the application subject to the payment of cost of ₹ 25,000/- to the respondent and further we direct the appellant to comply with the direction of predeposit of ₹ 30,00,000/-within a period of four weeks from the date of receipt of certified copy of this order. - Appeal to be restored subject to above conditions.

Issues involved:
1. Restoration of appeals dismissed for non-compliance by the Tribunal.
2. Allegations of evasion of excise duty and penalty imposed.
3. Financial hardship faced by the appellant.
4. Legal arguments for and against restoration of the appeal.
5. Predeposit requirement and compliance.

Detailed Analysis:
1. The appellant sought restoration of appeals dismissed for non-compliance by the Tribunal due to alleged evasion of excise duty. The appellant, engaged in manufacturing decorative veneers and plywood, faced accusations of under valuation and clandestine clearance. The Tribunal confirmed a demand for excise duty and imposed penalties. The appellant failed to comply with the predeposit requirement, leading to the dismissal of appeals under Section 35 F of the Central Excise Act.

2. The appellant argued financial hardship due to the imposed amount, resulting in an abandoned production stage and inability to pay salaries. Recovery proceedings were initiated, and the appellant faced auction of properties due to default in loan repayment. The appellant contended that they were now prepared to comply with the predeposit directive and sought restoration of the appeals to address the merits of the case.

3. The legal counsel for the appellant emphasized the readiness to comply with the predeposit amount and highlighted the appellant's case on merits. Citing Supreme Court decisions, the appellant argued that appeals should not be dismissed solely for lack of predeposit. An affidavit from the Managing Director supported the request for depositing the required amount.

4. The respondent opposed the restoration, asserting that the only recourse for the appellant was to file an appeal before a higher forum. Referring to legal authorities, the respondent contended that restoring the appeal would amount to a review of the Tribunal's order, which is impermissible under the law. Both parties relied on precedents to support their arguments.

5. After considering the submissions and legal precedents, the Tribunal allowed the application for restoration subject to the payment of a cost to the respondent and compliance with the predeposit requirement. The appellant was directed to deposit the specified amounts within a set timeframe. Failure to comply would result in the dismissal of the restoration applications. The decision aimed at balancing the interests of justice with procedural requirements, ensuring a fair opportunity for the appellant to present their case on merits.

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