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TMI Blog2014 (1) TMI 1520X X X X Extracts X X X X X X X X Extracts X X X X ..... on paper and sought to recover those credits. The department found that the area of the factory as well as the consumption of electricity does not suggest manufacturing of the final products, as shown by the petitioner, for which CENVAT Credit is availed. The petitioner stated before the department that the factory is closed since February 2008 because of the financial and other stringencies. The proceeding culminated into an order imposing duties as well as penalties. The order is appealed before the Tribunal. An application, seeking waiver of the pre-condition deposit was disposed of by directing the petitioner to deposit 25% of the total liabilities imposed in the impugned order. Subsequently, an application for reconsideration and/or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Ex., Coimbatore, reported in 2004 (166) ELT 0067 (Tri. - Chennai) 3. Swadeshi Polytex Ltd. -vs- Commissioner of Central Excise, Ghaziabad, reported in 2004 (171) ELT (Tri. - Del.) Mr. Dutta further submits that the Tribunal is bound to adhere to the earlier decisions of the Tribunal in the event the case is fully covered by the earlier decision of the Tribunal and any departure therefrom would entail the said orders and judgments unsustainable in law. In this regard reliance is placed on the Division Bench judgment of this Court in the case of J.N. Chemical Private Limited -vs- CEGAT, reported in 1991 (53) E.L.T. 543 (Cal) and of a co-ordinate Bench judgment in the case of Hindusthan Laminators Pvt. Ltd. -vs- C.C.E., Calcutta-1, repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has observed in the following manner: "7. Against the aforesaid background, in our opinion it was impossible for the Tribunal to arrive at the conclusion that it could not be said that the appellant had a good prima facie case so as to justify the dispensation of the requirement of pre-deposit of the disputed amount of duty and penalty in question. On the facts and in the circumstances of the case, there was full justification for the exercise of the power vested in the Tribunal to dispense with the requirement of pre-deposit inasmuch as the case of the appellant was fully covered by the decision of a Special Bench of the Tribunal and still to insist upon the deposit of duty demanded and penalty levied would indubitably cause undue ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pleaded by the plaintiff in respect of their financial hardship and the financial position which was also filed before the Tribunal and further placed before this Court which would show that the prior deposit of the duty will cause hardship to the petitioner and furthermore the said aspect has not been taken into account properly in my opinion by the CEGAT at the time of hearing of the modification application or the other application. Accordingly, in my opinion, the plea of financial hardship has to be taken into account by the Court for interest of the justice in favour of the petitioner and I do not have any hesitation to agree with the opinion expressed by the Hon'ble Division Bench of this High Court in J.N. Chemical (Pvt.) Limited v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tructure cannot support the manufacturing activities to such a large extent as has been shown by the petitioner to have been done during the relevant period. Therefore, in view of the aforesaid facts, this Court does not find that it could at all be said that there was never any manufacturing activities undertaken by the petitioner in the said factory but leads to presumption that some manufacturing activities have been undertaken and in absence of any cogent and counter evidence it would further lead to a presumption that the closure was made, as has been contended by the petitioner. In view of the uniform stand of the Tribunal in granting total waiver of the pre-condition deposit in the event it finds that the factory is closed, this Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned, this Court feels that the appeal filed before the Tribunal should be disposed of on expeditious basis. Accordingly, the Tribunal is directed to hear out the appeal and dispose of the same by passing a reasoned order, in accordance with law, as quickly as possible, preferably within four weeks from the date of communication of this order, affording opportunity of hearing to the respective parties. For abundant precaution it is once again made clear that this order shall not be construed to have been made on the merit of the appeal and the authority shall be free to decide the same independently without being influenced by any observations made hereinabove. The writ application is disposed of. There shall, however, be no order as to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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