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TMI Blog2016 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... , the condition of pre-deposit of any amount could not have been imposed. This is, however, not the same thing to suggest that even if the facts otherwise so merited, the Tribunal had no jurisdiction to impose suitable condition of depositing appropriate amount. Reverting to the facts of the case, it appears that the petitioners were not duly served with the notices of hearing of the show cause notice proceedings and hearing was revived after long gap of nearly 9 years. In the meantime, factory of the petitioners was closed down. Primarily on such grounds, we are inclined to set aside the condition imposed by the Tribunal of depositing a sizable sum of ₹ 50 Lacs which is made a precondition for fresh disposal of the show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and passed the final order confirming the duty demand with penalty and interest. This order the petitioners challenged before the Tribunal and requested for remand of the proceedings since the order in original was passed ex-parte. On the date of hearing on 6.2.2014, in fact, the petitioners requested for adjournment. However, the Tribunal on the ground that twice the proceedings were earlier adjourned, refused to grant any further time and while remanding the proceedings to the adjudicating authority imposed the said condition of depositing sum of ₹ 50 lacs on the petitioners. Tribunal made following observations: 4. On perusal of the record, it transpires that the demands have been confirmed on M/s.Waghbakriwala Rayons on the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there being a claim of violation of principles of natural justice, in the interest, in our view, the appellants should be granted an opportunity for filing reply to the show cause notice and being heard by the adjudicating authority. 5. In view of the above, there being noncooperation from the appellant even before us, which can be noticed from the fact that notes were filed for adjournments; appellant should be put to some conditions for remanding the matter back to the adjudicating authority. Appellants need to cooperate with the adjudicating authority and to do so, we direct M/s. Waghbakriwala Rayons, the main appellant herein to deposit an amount of ₹ 50,00,000/- (Rupees Fifty Lacs Only) within a period of eight weeks from toda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 4 crores (rounded off) with matching penalty and interest. Tribunal under Section 35C of the Central Excise Act has ample powers to impose suitable conditions. 5. We notice that in Avaya Global Connect Ltd. (supra), the Division Bench of this Court has recognized the width of the power of the Tribunal while disposing of an appeal in terms of Section 35C of the Central Excise Act. The Division Bench made following observations: On fair reading of section 35C of the Act, the Appellate Tribunal is conferred with the power and has a wide discretion to pass such orders as it thinks fit, confirming, modifying, or annulling the decision or order appealed against or refer the case back to the authority which passed such decision or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while remanding the matter to the original authority can be said to be imposing of condition of deposit of some amount before any de novo adjudication by the original authority on remand which was necessitated due to the reasons attributed to the assessee. In a given case, if it is found by the Tribunal that the order of remand is required to be passed because of the reasons which are not attributed to the assessee and/or because of any error and/or fault on the part of adjudicating authority, the Tribunal may not issue such direction of deposit. However, to say that the Appellate Tribunal lacks total jurisdiction of issuing any such direction of deposit of some amount while remanding the matter to the original adjudicating authority for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y amount could not have been imposed. This is, however, not the same thing to suggest that even if the facts otherwise so merited, the Tribunal had no jurisdiction to impose suitable condition of depositing appropriate amount. 8. Reverting to the facts of the case, it appears that the petitioners were not duly served with the notices of hearing of the show cause notice proceedings and hearing was revived after long gap of nearly 9 years. In the meantime, factory of the petitioners was closed down. Primarily on such grounds, we are inclined to set aside the condition imposed by the Tribunal of depositing a sizable sum of ₹ 50 Lacs which is made a precondition for fresh disposal of the show cause notice by the adjudicating authority. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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