2002 (2) TMI 114 - HC - Central Excise

High Court sets aside pre-deposit orders, Tribunal to decide appeals promptly, no costs.

The High Court set aside the pre-deposit orders requiring petitioners to deposit Rs. 10 lacs by a specified date for their appeals to be heard by the ... Pre-deposit requirement - deposit condition for stay of appellate proceedings - exercise of discretion under Section 35F of the Central Excise Act, 1944 - setting aside appellate pre-deposit orders - direction to adjudicatory tribunal to hear appeals on meritsPre-deposit requirement - deposit condition for stay of appellate proceedings - setting aside appellate pre-deposit orders - Validity of the Tribunal's orders (Annexures P-1 and P-2) imposing pre-deposit and the appropriate conditional direction to enable hearing of the appeals - HELD THAT: - The Court noted that the Tribunal had required the petitioners to make a total deposit of Rs. 1,94,00,000/-, whereas a co-appellant (M/s. Emmtex) was directed to deposit only Rs. 5 lacs in respect of the same impugned order. Having regard to that disparity and the factual material placed before the Bench concerning the cash position of Petitioner No. 1 (taken on record as Mark 'A'), and after hearing counsel, the Court exercised its supervisory jurisdiction to set aside the Tribunal's orders at Annexures P-1 and P-2. Rather than adjudicating the merits, the Court substituted a reasonable conditional requirement - a deposit of Rs. 10 lacs - accepted as reasonable by the petitioners' counsel, and directed that upon such deposit being made by the specified date the Tribunal shall hear and decide the appeals on merits and shall not dismiss them for non-payment of the earlier pre-deposit. The Court did not express any view on the substantive merits and urged expeditious disposal by the Tribunal. [Paras 5, 6, 7]Annexures P-1 and P-2 set aside; petitioners to make a deposit of Rs. 10 lacs by March 31, 2002, upon which the Tribunal shall hear and decide the appeals on merits and shall not dismiss them for failure to make the earlier deposit.Final Conclusion: The writ petition is allowed to the extent that the Tribunal's pre-deposit orders (Annexures P-1 and P-2) are set aside and substituted by a direction that, if the petitioners deposit Rs. 10 lacs by March 31, 2002, the Tribunal shall hear and decide their appeals on merits and shall not dismiss them for non-payment of the earlier demanded deposit; no comment is made on the merits and no order as to costs. The High Court set aside the orders for pre-deposit, directing the petitioners to deposit Rs. 10 lacs before March 31, 2002 for their appeals to be heard by the Tribunal. The Tribunal must decide the appeals expeditiously, preferably within three months after the deposit. No costs were awarded.