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of <h1>High Court reduces pre-deposit for pending appeals by Tamil Nadu Electricity Board, allows appeals to proceed</h1> <h3>TAMIL NADU ELECTRICITY BOARD Versus CEGAT</h3> The High Court modified the pre-deposit amount for pending appeals by the Tamil Nadu Electricity Board from Rs. 20 lakhs to Rs. 5 lakhs, allowing the ... Stay - Pre-deposit of duty Issues:1. Whether the Tamil Nadu Electricity Board is liable to pay excise duty for manufacturing and clearing RCC poles without following Central Excise formalities.2. Whether the pre-deposit of Rs. 20 lakhs directed by the first respondent for pending appeals was justified.3. Whether the Tribunal's judgment exempting the Electricity Board from excise duty liability should be applied in this case.4. Whether the High Court should modify the pre-deposit amount for the appeals and direct the first respondent to hear the appeals on merits.Analysis:1. The Writ Petitions were filed by the Tamil Nadu Electricity Board challenging the order demanding excise duty for manufacturing and clearing RCC poles without following Central Excise formalities. The petitioner argued that the activities of the Superintending Engineers fell within the definition of 'manufacture' under the Central Excises and Salt Act, 1944, making the RCC poles excisable goods. The total duty claimed amounted to around Rs. 40 lakhs for the years 1986-87 and 1987-88.2. The first respondent had directed the petitioner to pre-deposit Rs. 20 lakhs for all cases before the appeals could be heard. The petitioner sought waiver of the pre-deposit, citing a Tribunal judgment and a subsequent Supreme Court approval in a similar case involving the Kerala Electricity Board. The High Court, considering the facts and the judgments presented, found the pre-deposit amount excessive and modified it to Rs. 5 lakhs, allowing the appeals to be heard on merits.3. The petitioner relied on the Tribunal's judgment in Kerala Electricity Board v. CCE, Cochin, which exempted the Kerala Electricity Board from paying excise duty under similar circumstances. The High Court acknowledged the relevance of this judgment and the Supreme Court's approval, indicating a prima facie case for waiving the pre-deposit requirement based on the Tribunal's interpretation of the law.4. After considering the arguments and judgments presented, the High Court modified the pre-deposit amount to Rs. 5 lakhs, allowing the appeals to proceed on merits. The Court set aside the impugned orders dated 16-10-1989 and 29-12-1989, directing the first respondent to hear the appeals and pass orders in accordance with the law. The Court made no order as to costs, concluding the matter in favor of the petitioner.
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