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TMI Blog2011 (11) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal u/s 35C of the Act, and not a condition to entertain the appeal u/s 35F. Allegations against the appellant are that of clandestine removal and undervaluation of goods – demand of duty of 3.65 lacs apart from penalty and interest – it is held that keeping in view the extent of liability which may arise against the appellant, direction to deposit the amount of Rs.80 lacs is not disproportionate. Thus, argument of appellant regarding amount being highly excessive is not tenable. However, Rs.20 lacs deposited by appellant shall be taken into consideration for considering the total deposit of Rs.80 lacs i.e. the appellant is required to deposit an additional sum of Rs.60 lacs. Bank guarantee - Supreme Court in CCE v. Dunlop Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder passed by the Adjudicating Authority but directed the appellant to make deposit of Rs. 80 lacs within 8 weeks in view of judgment passed by this Court in Shiv Sewa Sadan v. CESTAT, New Delhi, 2010(254) E.L.T. 249 (P H). Learned counsel for the appellant has argued that:- (i) The learned Tribunal has recorded adverse comments against the appellant which are required to be expunged being unwarranted and untenable. (ii) In exercise of jurisdiction under Section 35C of the Act, the Tribunal could not order to deposit Rs. 80 lacs when the order of Adjudicating Authority is being set aside. (iii) That the amount of Rs. 80 lacs is highly excessive and disproportionate to the extent of liability which may arise against the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Voltas Limited v. Union of India, 1999(112) E.L.T. 34 (Del.) and Satvik Industries v. Commissioner of Central Excise, Delhi- II, 2010(252) E.L.T. 182 (Del.), taking a contrary view that the Tribunal cannot order the deposit of the amount while remanding the matter to the Adjudicating Authority. Section 35C of the Act, confers jurisdiction on the Appellate Tribunal to pass such orders as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the Authority, which passed such decision or order with such directions as the Appellate Tribunal may think fit. Therefore, the jurisdiction of the Appellate Tribunal to issue directions, while remanding the matter to the Adjudicating Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons under Section 35C was commented upon. In our view, the Tribunal has the jurisdiction to issue directions under Section 35C of the Act as it considers appropriate in its judicial discretion. It is needless to say that such direction cannot be arbitrary manner and without justification. Such directions have to meet the test of reasonableness. In view of the said fact, we do not find any merit in the second argument raised by the learned counsel for the appellant as well. The third argument that direction to deposit the amount of Rs.80 lacs is disproportionate to the contingent liability, is again not tenable. The liability on account of duty found at one stage is Rs.3,65,16,786/- apart from equivalent amount of penalty and the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1985 SC 330, has held that the State is not run on the Bank Guarantees. Therefore, we do not find any merit in the argument raised by the learned counsel for the appellant to permit the appellant to furnish Bank Guarantee to the extent of Rs.60 lacs. In view of the above, the present appeal is disposed of with the direction the amount of Rs.20 lacs shall be taken into consideration for considering the total deposit of Rs.80 lacs i.e. the appellant is required to deposit an additional sum of Rs.60 lacs. Such direction will meet the interest of the assessee and also the order passed by the Tribunal. Learned counsel for the appellant has lastly submitted that the time for deposit be extended. Since the appellant has been directed to ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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