1999 (9) TMI 425 - AT - Central Excise

Summary

Issues: Delay in filing appeal, waiver of pre-deposit of penalty

Delay in filing appeal:
The appeal before the Appellate Tribunal CEGAT, Chennai involved a delay of 18 days in filing the appeal, which the Managing Director attributed to his illness. The appellant sought condonation of the delay, supported by a medical certificate from a Civil Surgeon. The learned counsel argued for condonation, emphasizing the appellant's inability to take steps due to illness. The Tribunal, after considering the medical certificate, condoned the delay in filing the appeal.

Waiver of pre-deposit of penalty:
The appellant requested waiver of pre-deposit of Rs. 50,000 imposed for receiving goods without payment of duty. The appeal was initially filed before the Commissioner (Appeals), who directed pre-deposit of the entire amount, subsequently dismissing the appeal under section 35F of the Act for failure to pre-deposit. The appellant contended that they believed the received goods were exempted from duty and denied collusion with the supplier in evading duty. They argued that the penalty was excessive and harsh, citing financial hardships faced by their business. The Tribunal noted the appellant's bona fide belief and lack of collusion, directing them to pre-deposit a reduced amount of Rs. 10,000 within two months for further consideration by the Commissioner (Appeals) on merits without insisting on additional deposit. The matter was remanded to the Commissioner (Appeals) for de novo consideration, setting aside the impugned order.

In conclusion, the Tribunal allowed the appeal by way of remand, addressing both the delay in filing the appeal and the waiver of pre-deposit of penalty issues comprehensively. The judgment highlighted the importance of considering bona fide belief, lack of collusion, financial hardships, and providing an opportunity for further review by the Commissioner (Appeals) based on the reduced pre-deposit amount specified by the Tribunal.