9911796707
TMI Blog2001 (10) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 35F of the Central Excise Act, 1944 (for short 'the Act'). The Tribunal while disposing of petition's application seeking exemption from pre-deposit of the entire amount of Excise duty, has directed the petitioner to make a deposit of Rs. 1 Crore within six weeks of receipt of the order. 3.Briefly stated, the relevant facts are : The petitioner is engaged in the manufacture of Tyres of various sizes, for use in tractor trolleys (for short "TT"), in the Light Commercial Vehicles (for short "LCV") and Jeeps etc. Under Notification No. 41/89-C.E., dated 1st March, 1989, the rate of Excise duty payable per tyre when removed for TT is much less than the duty payable per tyre when removed as LCV. The main allegation against the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om them. However, on consideration of the reply filed by the petitioner, the Commissioner of Central Excise (Adjudication), Delhi, vide her order dated 31st October, 2000, raised a demand of Rs. 7,87,84,453/- on the petitioner. This order of the Commissioner has been challenged by the petitioner before the Tribunal. 4.An application for dispensing with the pre-deposit was filed. As noticed above, by the impugned order the Tribunal has directed deposit of Rs. 1 Crore as condition precedent for entertaining the appeal. 5.We have heard learned Counsel for the parties. Mr. Rajiv Nayyar, learned Senior Counsel for the petitioner has mainly submitted that the petitioner is a sick company under the Sick Industrial Companies (Special Provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal. However, proviso to the Section gives power to the Appellate Authority to dispense with such deposit unconditionally or subject to such conditions, as would safeguard interest of Revenue, in cases of "undue hardship". Language used in the Section is not merely "hardship", it is "undue hardship". "Hardship" connotes something harsher and more severe than trifling inconvenience or temporary loss of profit. For a hardship to become "undue", it must be shown that particular burden, which is required to be discharged, is out of proportion to the nature of the benefit the applicant would derive by complying with it. Therefore, while considering an application under the said proviso, the Tribunal has to bear in mind whether the deposit wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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