2009 (10) TMI 728 - HC - Central Excise

Summary

Issues:
Appeal arising out of order for waiver of pre-deposit for hearing, Adjustment of deposit against refund/rebate claim, Dismissal of appeal for not depositing amount within prescribed time.

Analysis:
The judgment pertains to two Central Excise Appeals arising from an order passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi, regarding the waiver of pre-deposit for hearing the appeal. The Tribunal had directed one appellant to deposit Rs. 5 Crores and another appellant to deposit Rs. 10 Lakhs. Subsequently, the appellants made the required deposits under protest. One of the appellants also claimed an adjustment of Rs. 3 Crores against their refund/rebate claim. The Central Excise Department admitted the deposit and adjustment made by the appellants. However, the Appellate Tribunal was insisting on dismissing the appeals on the ground that the amounts were not deposited within the prescribed time frame of ten weeks from the date of the order.

In response to the situation, the High Court considered the circumstances and decided to partly allow the appeals. The Court condoned the delay in depositing Rs. 5 Crores by one appellant and Rs. 10 Lakhs by the other appellant. The Court ruled that the appeals pending in the Appellate Tribunal should not be dismissed solely because the amounts were deposited beyond the specified ten-week period set by the Tribunal. The judgment did not impose any costs on the appellants for the delay in depositing the amounts. The Court's decision aimed to ensure that the appeals were not dismissed merely due to a technicality regarding the timeline for depositing the required sums.

This detailed analysis of the judgment showcases the issues involved, the actions taken by the parties, the admission of deposit and adjustment by the Central Excise Department, and the High Court's decision to partially allow the appeals and prevent their dismissal based on the timing of the deposits.