2018 (10) TMI 321 - HC - Central Excise

Pre-deposit - failure to comply with the time limit of pre-deposit - Section 35F of the Central Excise Act, 1944 - extension of time sought - Held that - The motion is allowed in terms of prayer clause (a) and the time to make the pre-deposit is extended till 2nd June, 2018 - Motion disposed off.

Summary

Issues:
Extension of time for deposit under Section 35F of the Central Excise Act, 1944.

Analysis:
The High Court of BOMBAY HIGH COURT addressed a motion for the extension of time granted by the Court in a previous order while disposing of an appeal. The Court had earlier dismissed the appeal due to the failure of the applicant to comply with the mandate of Section 35F of the Central Excise Act, 1944, which required a deposit equivalent to 7.5% of the service tax liability confirmed by the adjudicating authority. The Court had granted a four-week extension for the deposit, subject to compliance, and consideration of the appeal on merits. The applicant, in an affidavit, stated that the required deposit had been made by the respondent, albeit with a delay due to financial difficulties. The affidavit confirmed the deposit equivalent to 7.5% of the service tax liability was made before the specified date, leading to an extension of time until 2nd June, 2018.

The Court allowed the motion for an extension of time for the pre-deposit in accordance with the prayer clause, extending the deadline until 2nd June, 2018. However, the Court emphasized that it was the responsibility of the Tribunal to verify compliance with Section 35F of the Act. If the Tribunal found that the applicant had met the requirements, the appeal would be reinstated for consideration on its merits. The Court concluded the motion in the mentioned terms, highlighting the importance of compliance with the statutory provisions and the role of the Tribunal in ensuring such compliance before proceeding with the appeal.