2013 (2) TMI 695 - HC - Central Excise

High Court reduces appeal deposit, denies cross-examination, finding Tribunal influenced by incriminating material.

M/s Shyam Feerous Ltd. Versus Addl. Commissioner, Central Excise

M/s Shyam Feerous Ltd. Versus Addl. Commissioner, Central Excise - 2015 (322) E.L.T. 335 (All.) Issues involved: Challenging an order passed on an Excise Stay Application under section 35G of the Central Excise Act regarding the deposit amount required for hearing of the appeal.Summary:The appellant filed an appeal challenging an order directing them to deposit Rs. 8 Lakhs as a precondition for the hearing of the appeal. The appellant raised the issue of not being allowed to cross-examine witnesses, citing a Supreme Court case to support their argument. Both parties agreed for the appeal to be heard and decided finally at the admission stage. The appellant contended that incriminating documents found during a search at other premises were wrongly used against them, as no search was conducted at their premises. They also requested an opportunity to cross-examine individuals relied upon by the department, which was denied. The extended period of limitation invoked was also disputed.The High Court, after considering the submissions, found that the order passed by the Customs, Excise & Service Tax Appellate Tribunal did not address the points raised by the appellant. The Tribunal's decision was influenced by the presence of incriminating material without considering the appellant's arguments. Consequently, the High Court disposed of the appeal by reducing the deposit amount to Rs. 4 Lakhs instead of Rs. 8 Lakhs, to be paid within three weeks. The appeal was allowed in part, with no costs imposed.