Court reduces pre-deposit amount on appeal, sets deadline for payment. Failure may lead to dismissal.

The Court partially allowed the appeal, reducing the pre-deposit amount from Rs. 40.00 lacs to Rs. 30.00 lacs for two appeals due to complete confiscation of sale proceeds and appellant's financial position. The appellant was directed to make two separate deposits totaling Rs. 30.00 lacs within eight weeks, with failure resulting in dismissal. The previous deposit of Rs. 12.00 lacs was credited towards the new requirement. Appeals would be restored and decided on merits upon compliance.

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Issues:
Challenge to final orders passed by Customs, Excise and Service Tax Appellate Tribunal for failing to pre-deposit in appeals.

Analysis:
The appellant contested the final orders of the Tribunal, which required a pre-deposit of Rs. 40.00 lacs in total for two appeals, with 25% and 50% of the penalty amounts directed to be pre-deposited. The appellant argued that since the sale proceeds of the seized goods were entirely confiscated, there was no justification for such a high pre-deposit. The appellant claimed financial inability to raise the entire amount, leading to the dismissal of the appeal.

The respondent opposed the appeal and supported the Tribunal's order. After hearing both parties, considering the complete confiscation of sale proceeds and the appellant's financial position, the Court decided that justice would be served by reducing the pre-deposit to Rs. 30.00 lacs in total for both appeals. The Court partly allowed the appeal, setting aside the Tribunal's orders and directing the appellant to make the reduced pre-deposit.

The Court clarified that the appellant's previous deposit of Rs. 12.00 lacs would be credited towards the new pre-deposit requirement. The appellant was instructed to make two separate deposits of Rs. 20.00 lacs and Rs. 10.00 lacs in the two appeals after adjusting the amounts already deposited.

The Tribunal's dismissal orders were set aside on the condition that the appellant deposits Rs. 30 lacs within eight weeks. Failure to comply within six weeks would result in the dismissal orders remaining in place. Once the deposit was made and evidence provided to the Tribunal, the appeals would be restored and finally decided on merits.

Both appeals were disposed of based on the above terms, providing a detailed resolution to the issues raised regarding the pre-deposit requirements and the appellant's financial constraints.

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