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of <h1>High Court overturns Tribunal's decision, citing lack of reasoning & financial hardship consideration. Remand for fresh review.</h1> The High Court set aside the Tribunal's orders due to lack of reasoning and consideration of financial hardship in directing a substantial pre-deposit ... Writ Petition - Pre-deposit Issues:1. Pre-deposit requirement under Section 35(F) of the Central Excise Act for entertaining appeals before the Tribunal.2. Consideration of financial hardship by the Tribunal in directing pre-deposit.3. Adequacy of reasons provided by the Tribunal in its orders.4. Validity of the impugned orders and the need for setting them aside.Analysis:1. The petitioners, a Textile Unit and its Director, were issued a notice under the Central Excise Act for recovery of a substantial amount. They appealed the assessment by the respondent No. 3 and approached the Tribunal. The Tribunal directed a pre-deposit of Rs. 25,00,000/- as a condition to entertain the appeals, citing Section 35(F) of the Central Excise Act.2. The petitioners argued financial hardship and requested a waiver of the remaining pre-deposit amount. The Tribunal extended the time for pre-deposit but rejected the plea of financial hardship without providing adequate reasons. The High Court observed that the Tribunal's orders lacked a proper consideration of the petitioners' financial position and reasons for the pre-deposit requirement.3. The High Court found that the Tribunal's orders were non-speaking, as they did not sufficiently address the specific arguments raised by the petitioners regarding financial hardship and tax audit reports indicating losses. The Tribunal failed to provide a detailed rationale for its decision, leading to the orders being deemed unsustainable.4. Consequently, the High Court set aside the impugned orders and remitted the matter back to the Tribunal for a fresh consideration. The petitioners were granted the liberty to present additional evidence supporting their case for relaxing the pre-deposit condition. The Tribunal was instructed to pass a new order within a reasonable timeframe, considering the evidence presented by the petitioners.In conclusion, the High Court disposed of the rule accordingly, without imposing any costs on the parties. The parties were directed to obtain an ordinary copy of the order for their records upon payment of usual copying charges.
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