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2004 (2) TMI 584 - AT - Central Excise
Issues:
1. Modification of a stay order directing reversal of deemed Modvat credit. 2. Compliance with High Court's interim direction regarding deposit of Modvat credit. 3. Financial hardships plea by the appellants. Issue 1: Modification of Stay Order The appellants sought modification of a stay order directing them to reverse deemed Modvat credit of Rs. 5.13 lakhs within a specified period. The Counsel for the appellants presented an application for modification in light of an interim order by the High Court in a writ petition filed by the same party. The High Court's interim direction in a similar case required the party to pre-deposit 50% of the Modvat credit amount with the department. The appellants requested a modification of the Tribunal's stay order based on this development. Issue 2: Compliance with High Court's Interim Direction The Counsel informed the Tribunal that the party had complied with the High Court's interim direction by depositing Rs. 3.75 lakhs under a TR-6 challan. Given the similarity of facts and circumstances between the High Court's order and the present case, the appellants requested a suitable modification of the Tribunal's stay order. The Tribunal, considering the Larger Bench decision in Digambar Foundary, decided to recall the earlier order and directed the appellants to deposit 50% of the Modvat credit amount within 4 weeks from the date of the judgment. Issue 3: Financial Hardships Plea The appellants reiterated their plea of financial hardships, supported by the submission of Balance Sheets for the last three financial years. The Counsel prayed for a period of 4 weeks to deposit any amount fixed as per the High Court's order. The Tribunal, taking into account the High Court's interim order in a similar case involving the same party and considering the financial difficulties claimed by the appellants, decided to modify the earlier order. The appellants were directed to deposit 50% of the specified amount within the given timeframe and report compliance accordingly.
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