Pre-deposit in Cenvat credit dispute modified, with partial deposit directed as condition for hearing the appeal.

In a central excise dispute concerning alleged wrongful availment of Cenvat credit, the Delhi High Court considered whether the Tribunal was justified in insisting on a deposit of Rs. 50 lakhs as a pre-condition for hearing the appeal. Taking into account the nature of the controversy and the quantum involved, the Court modified the pre-deposit direction and required only a partial deposit. The appellant was directed to deposit 50% of the Cenvat credit amount in two equal instalments as a condition for hearing the appeal on merits.

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Issues: Whether the Tribunal was right in directing deposit of Rs. 50 lakhs as a pre-condition for hearing the appeal on merits.

Analysis: The appeal arose from an order on waiver of pre-deposit in a central excise dispute involving alleged wrongful availment of cenvat credit. Having regard to the nature of the controversy and the quantum involved, the Court modified the Tribunal's order and directed a partial deposit instead of the full amount demanded.

Conclusion: The direction to deposit Rs. 50 lakhs was modified, and the appellant was required to deposit 50% of the cenvat credit amount in two equal instalments as a condition for hearing of the appeal.

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