Ex parte pre-deposit order recalled as CESTAT restored hearing opportunity and directed status quo ante in the appeal.

The CESTAT recalled an ex parte pre-deposit order after considering the explanation for non-appearance, the smallness of the demand, and the need to avoid rejecting the appeal at the threshold without hearing on merits. Exercising its power under Rule 41 of the CESTAT Procedure Rules, 1962, it restored the matter to its original position and granted the appellant an opportunity of hearing in the stay application and appeal on the fixed date. The order was expressly confined to the facts of the case and stated not to operate as a precedent.

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Issues: Whether the ex parte stay order directing pre-deposit should be recalled and the appellant be given an opportunity of hearing in the stay application and appeal.

Analysis: The Bench noted the explanation for non-appearance, the smallness of the demand, and the fact that the appeal should not be rejected at the threshold without consideration on merits. It also exercised its power under Rule 41 of the CESTAT Procedure Rules, 1962, to recall the earlier order and restore the matter for hearing. The order was passed in the circumstances of the case and was expressly stated not to be treated as a precedent.

Conclusion: The ex parte pre-deposit order was recalled, status quo ante was directed, and the appellant was granted an opportunity of hearing on the fixed date.

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