High Court sets aside Customs Tribunal orders, grants last chance for waiver, directs Rs. 50,000 deposit

The High Court set aside the orders passed by the Customs, Excise and Service Tax Appellate Tribunal and remanded the case for consideration on merits. The Court granted the petitioners one last opportunity to argue for waiver of pre-deposit, subject to paying a heavy cost. A tentative date was fixed for the tribunal to hear the case, with the petitioner directed to deposit Rs. 50,000 by a specified date.

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Issues:
Challenge to orders passed by Customs, Excise and Service Tax Appellate Tribunal regarding pre-deposit proceedings.

Analysis:
The petitioners challenged orders dated 22.8.2013 and 3.12.2013 passed by the Customs, Excise and Service Tax Appellate Tribunal arising from pre-deposit proceedings. The tribunal proceeded ex-parte against the petitioner due to repeated adjournment requests. The tribunal required a pre-deposit of Rs. 1 crore, which the petitioner sought to recall through a Misc. Application, but was rejected. The High Court acknowledged the seriousness of pursuing the proceedings but noted the reason for the last adjournment was the sickness of the petitioner's representative. The Court granted the petitioners one last opportunity to argue for waiver of pre-deposit before the tribunal, subject to paying a reasonable heavy cost for availing this chance.

The High Court set aside the orders passed by the tribunal and placed the proceedings back before the tribunal for consideration on merits and disposal in accordance with the law. A tentative date of 21.4.2013 was fixed for the tribunal to hear the case, ensuring no fresh notices need to be served. The Court emphasized that the tribunal could reschedule the hearing if needed. The petitioner was directed to deposit Rs. 50,000 with the Gujarat State Legal Services Authority by 31.3.2014. Finally, the petition was disposed of by the High Court.

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