Pre-deposit waiver in Cenvat credit dispute led to expeditious appellate hearing without further deposit.

Further pre-deposit was not insisted upon where the petitioner had already debited a substantial part of the disputed amount, the matter had remained pending for a long period, and the company was under protective orders due to sick industrial status. In these circumstances, the Madras HC directed the appellate authority to hear the appeal on merits and dispose of it expeditiously without requiring any additional pre-deposit. The relief was granted to secure an effective appellate hearing rather than prolong recovery-related proceedings.

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Issues: Whether the appellate authority should be directed to hear the appeal without insisting on further pre-deposit and dispose of it on merits.

Analysis: The writ petition arose from an interim order declining waiver of pre-deposit in proceedings relating to recovery of Cenvat credit and penalty. The petitioner had already debited a substantial part of the disputed amount, the company had been under protective orders on account of its sick industrial status, and the matter had remained pending for a long period. In these circumstances, the Court found it appropriate to secure an expeditious decision in the appeal itself rather than require any further deposit.

Conclusion: The appellate authority was directed to dispose of the appeal expeditiously without insisting on any further pre-deposit. The relief was granted in favour of the petitioner.

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