High Court Quashes Tribunal Order, Directs Full Waiver, Orders Prompt Merits Decision

The High Court allowed the petition, quashed the Tribunal's order, and directed the Tribunal to accept full waiver of the pre-deposit amount. The Court instructed the Tribunal to proceed with deciding the main appeal on merits promptly.

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Issues:
Challenge to order rejecting waiver of pre-deposit in a writ petition.

Analysis:
The High Court heard a writ petition challenging an order passed by the Customs Excise and Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad, which directed the petitioner to reverse entire Cenvat credit within a specified period. The petitioner, Bharat Sanchar Nigam Limited, sought waiver of pre-deposit, which was rejected by the Tribunal. The petitioner argued that similar waiver applications had been allowed in other cases, citing specific instances from the Bombay High Court and the Punjab & Haryana High Court. The petitioner contended that since waivers were granted in those cases, the impugned order should be set aside.

The respondents did not dispute the fact that waiver applications had been allowed in other cases, but they submitted that the affidavit-in-reply was filed on merits and not on the question of waiver applications. The respondents acknowledged that in this particular case, the petitioner was asked to make a pre-deposit, unlike in other similar cases where waivers were granted. The respondents conceded that due to the unique circumstances of the case, the waiver application should have been allowed by the Tribunal.

Ultimately, the High Court allowed the petition, quashed the Tribunal's order, and directed the Tribunal to accept full waiver of the pre-deposit amount. The Court instructed the Tribunal to proceed with deciding the main appeal on merits promptly. The ruling was made absolute, and no costs were awarded. Direct service was permitted in this matter.

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