1998 (11) TMI 137 - HC - Central Excise

Summary

Issues Involved:
Adjudication under Central Excise Act, 1944, pre-deposit waiver, stay of recovery, remand of the matter to Adjudicating Authority, refund of pre-deposit.

Adjudication and Pre-Deposit:
An order of adjudication u/s Central Excise Act, 1944 resulted in a demand against the petitioner. The Tribunal directed a pre-deposit of Rs. 50 lakhs, which was complied with by the petitioner.

Remand and Technical Literature:
The appeal was remanded to the Adjudicating Authority due to the need to consider technical literature provided by the petitioner. The Tribunal found itself inappropriate to decide based on technical aspects and referred the matter back for fresh adjudication.

Refund of Pre-Deposit:
Upon remand, the petitioner requested a refund of the pre-deposit, which was denied by the CEGAT. The petitioner approached the High Court seeking refund, arguing that once the order of adjudication was set aside, there was no basis for withholding the deposited amount.

Court's Decision:
The High Court held that the Tribunal had no authority to retain the pre-deposit after setting aside the order of adjudication. As there was no legal provision for such retention, the Court directed the refund of the pre-deposit amount to the petitioner within four weeks. The impugned order of the Appellate Tribunal was set aside, and no costs were awarded.