High Court restores appeal, emphasizes no prejudice for counsel's legal mistake. Financial hardship exemption considered.

The High Court granted the appellant's appeal for restoration after it was dismissed by the CESTAT due to failure to deposit the required sum. The Court emphasized that a mistake of law by counsel should not prejudice the party. The appellant was allowed to file an application seeking exemption from the pre-deposit condition due to financial hardship, and the CESTAT was directed to consider the application. The appeal was restored before the CESTAT for further proceedings.

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Issues Involved:
Appeal for restoration of appeal dismissed as withdrawn by Customs, Excise and Service Tax Appellate Tribunal (CESTAT) due to failure to deposit required sum as pre-condition for hearing.

Analysis:
The appellant's grievance pertains to the rejection of their application for restoration of the appeal by the CESTAT. The appeal was initially withdrawn by the appellant's counsel due to the inability to deposit the required sum as a pre-condition for the hearing under the unamended Customs Act, 1962. Subsequently, realizing the lack of an alternative remedy, the appellant sought restoration of the appeal, which was denied by the CESTAT. The High Court emphasized the principle that a mistake of law or legal understanding by counsel should not prejudice the party represented. In this case, the appellant was erroneously allowed to withdraw the appeal despite having no alternative remedy, leading to injustice. The CESTAT's refusal to restore the appeal based on a technical ground regarding the pre-deposit condition was deemed unjust by the High Court.

The High Court, after hearing the arguments from both parties, concluded that the appeal dismissed as withdrawn by the CESTAT should be restored. The appellant was granted the liberty to file an application seeking exemption from the pre-deposit condition within two weeks, detailing any grounds of financial hardship. The CESTAT was directed to consider the application and make a decision accordingly. The High Court allowed the appeal to the extent of restoring it before the CESTAT for further proceedings.

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