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of <h1>Petition partially allowed, deposit & security required within set time. Compliance waives pre-deposit for remaining amount.</h1> <h3>M/s Nirmal Fab Tex Pvt. Ltd. Versus Union of India and another</h3> M/s Nirmal Fab Tex Pvt. Ltd. Versus Union of India and another - TMI Issues: Challenge to order declining waiver of pre-deposit in Central Excise Appeals.Analysis:The petitioner challenged the order of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi, which declined the waiver of the condition of pre-deposit in relation to Central Excise Appeals. The Tribunal found the petitioner-company liable for clandestine removal of processed Man Made Fabrics (MMF), directing payment of central excise duty, interest, and penalty. The petitioner unsuccessfully challenged the order before the Commissioner, Central Excise (Appeals), leading to appeals and stay applications before the Tribunal.The Tribunal, in its order, considered the submissions for waiver of pre-deposit and found circumstantial evidence of clandestine removal. It noted the lack of substantive evidence supporting the petitioner's claims and observed an admission of clandestine removal. The Tribunal directed the petitioner to deposit the entire demanded amount within eight weeks. The petitioner, during the writ petition, emphasized adverse financial conditions, revival efforts, and readiness to pay the principal amount of duty demanded.Upon review, the High Court observed the Tribunal's harshness in presuming an admission of clandestine removal based on the Director's explanation. It emphasized the need for a merit hearing of the appeals and acknowledged the petitioner's efforts for company revival. The Court directed the petitioner to deposit a partial amount and furnish solvent security, granting relaxation in pre-deposit conditions for a balanced approach safeguarding revenue interests while allowing a merit hearing of the appeals.The Court partially allowed the petition, requiring the petitioner to deposit a specified amount and furnish security within a set timeframe. Compliance with these conditions would waive the pre-deposit requirement for the remaining amount, allowing the Tribunal to consider the appeals on merits. Failure to meet the stipulated requirements within the specified time would lead the Tribunal to consider non-fulfillment of pre-deposit conditions and pass appropriate orders accordingly. The Court imposed no costs in this matter.
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