High Court sets aside CESTAT's pre-deposit order, emphasizes natural justice

The Calcutta High Court allowed a Writ Petition against a CESTAT order directing a pre-deposit of Rs. 15,00,000, despite acknowledging a violation of natural justice. The Court set aside the directive, emphasizing the need for a de novo consideration and upholding principles of natural justice. The Tribunal was directed to rehear the stay application within eight weeks without delving into the case's merits. No costs were awarded, and parties were permitted to communicate the order's essence, with urgent certified copies available upon request.

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Issues involved: Challenge to CESTAT order u/s 15,00,000 pre-deposit directive.

The Calcutta High Court, in a judgment delivered by Justice Soumitra Pal, allowed a Writ Petition filed by a company against a CESTAT Final Order and Stay Order. The petitioners challenged a directive to pre-deposit a sum of Rs. 15,00,000, despite the Tribunal acknowledging a violation of natural justice. The High Court held that the order directing the pre-deposit could not be sustained, as it contradicted the need for a de novo consideration and violated natural justice. The Court set aside the order and directed the Tribunal to hear the stay application afresh within eight weeks. The judgment clarified that it did not delve into the merits of the case, leaving all points open for the Tribunal's consideration. No costs were awarded, and the parties were allowed to communicate the gist of the order. Additionally, urgent certified copies of the order were to be provided to the appearing parties upon request.

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