2018 (8) TMI 1577 - AT - Central Excise

Restoration of appeal - appeal was dismissed for want of compliance of pre-deposit - Held that - The appellant having made sufficient predeposit, the appeal has to be restored to the files of the Tribunal - appeal restored. Demand raised for violation of Rule 8(3A) of Central Excise Act, 2002 - whether the appellant is liable to clear the goods using the CENVAT account during the period of default? - Held that - The issue is under consideration before the Hon ble Apex Court in the case of Union of India Vs. Indsur Global Ltd. 2014 (11) TMI 1101 - SUPREME COURT . The Hon ble Apex Court has stayed the operation of the orders passed by the Hon ble High Courts of Gujarat and Madras - the matter requires to be remanded to the adjudicating authority, who shall consider the issue afresh on the basis of the outcome of the decision of Hon ble Supreme Court. Appeal allowed by way of remand.

Summary

Issues: Restoration of appeal due to non-compliance with predeposit requirement under Section 35F of the Central Excise Act, 1944; Liability to clear goods using CENVAT account during a period of default under Rule 8(3A) of the Central Excise Act, 2002.

In the judgment by Ms. Sulekha Beevi C.S., Member (Judicial) at CESTAT Chennai, the appellant sought restoration of an appeal that was dismissed for failing to comply with the predeposit requirement. The Managing Director argued that they had already paid an amount higher than directed through the CENVAT account, citing financial constraints for not paying in cash. After considering the submissions and records, it was held that the appellant had made a sufficient predeposit, leading to the restoration of the appeal to the Tribunal's files.

Regarding the issue of liability under Rule 8(3A) of the Central Excise Act, 2002, the judgment highlighted the pending consideration by the Hon'ble Apex Court in cases such as Union of India Vs. Indsur Global Ltd. and Malladi Drugs and Pharmaceuticals Ltd. The Hon'ble Apex Court had stayed orders from the High Courts of Gujarat and Madras on this matter. Consequently, it was decided that the issue should be remanded to the adjudicating authority for a fresh consideration based on the outcome of the Supreme Court's decision in the cited cases. The appeal was allowed by way of remand, emphasizing the need for further examination in light of the pending Supreme Court decisions.