2014 (1) TMI 577 - AT - Central Excise

Tribunal Upholds Deposit Order for Duty Demand, Balancing Financial Constraints & Revenue Protection

The Appellate Tribunal CESTAT NEW DELHI dismissed the appellants' miscellaneous applications for modification of the stay order, directing M/s. Shri Guru ... Modification of stay order – 50% amount ordered to be made – Held that:- The appellant’s contention as made in their appeal memo at the time of hearing have been considered - just on the ground of financial difficulty, the requirement of pre-deposit cannot be waived as revenue’s interest have also to be safeguarded - the pre-deposit is only of 50% of the duty demand – there is no ground for modification of the stay order – Thus, the appellants are directed to deposit the amount within the prescribed time – Decided against Assessee. Issues:1. Modification of stay order regarding pre-deposit requirement.Analysis:The Appellate Tribunal CESTAT NEW DELHI, comprising Smt. Archana Wadhwa and Shri Rakesh Kumar, JJ., addressed a matter where two appellants, M/s. Shri Guru Nank Dev Engineers and M/s. Gobind Expeller Company Pvt. Ltd., were directed to deposit 50% of the duty demand within 8 weeks. The appellants failed to comply with this direction, leading to a miscellaneous application for modification of the stay order. The consultant for the appellant argued that all points raised during the initial hearing were not considered, highlighting the financial constraints of the small firm as a reason to waive the pre-deposit requirement. On the other hand, the Departmental Representative opposed the modification, emphasizing the need to safeguard the Revenue's interests and stating that financial difficulty alone cannot warrant a total waiver of the pre-deposit requirement.Upon hearing both sides and reviewing the submissions and records, the Tribunal concluded that the appellant's contentions raised during the initial hearing had been duly considered. The Tribunal emphasized that financial difficulty alone cannot justify a complete waiver of the pre-deposit requirement, as the Revenue's interests must also be protected. Additionally, it was noted that the pre-deposit amount was only 50% of the duty demand. Consequently, the Tribunal dismissed the miscellaneous applications for modification, directing the appellants to deposit the specified amounts within six weeks from the date of the order and report compliance by a specified date.