2007 (1) TMI 192 - HC - Central Excise

Appeal Dismissed for Non-Compliance with Section 35F - Remand for Waiver Reconsideration

The Division Bench set aside the Customs, Excise and Service Tax Appellate Tribunal's order and remanded the case for reconsideration of the waiver ... Stay/Dispensation of pre-deposit - Financial hardship - Sick industry Issues involved: Appeal against order of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) u/s 35G of the Central Excise Act, 1944 regarding recovery of excise duty, waiver of pre-deposit, compliance with orders, and financial capacity of the assessee.Summary:1. The assessee, engaged in manufacturing excisable items, faced demands for unpaid duty. Commissioner (Appeals) found recovery of amount but non-payment to the Department, leading to penalty imposition. CESTAT concluded the amount was recoverable under Section 11D of the Act. The assessee challenged this decision. 2. A Division Bench set aside CESTAT's order, emphasizing the need for adjudication based on parties' stands. The case was remanded to CESTAT for reconsideration of the waiver application. CESTAT directed the assessee to deposit the determined amount, but the appeal was dismissed for non-compliance with Section 35F of the Act.3. The assessee approached the High Court multiple times, seeking relief and recalling of orders. The Court noted the strategic timing of the application under the Sick Industrial Companies Act and dismissed the appeal, citing the Supreme Court's judgment in Metal Box India Ltd. v. Commissioner of Central Excise, Mumbai.4. After considering arguments, the High Court upheld CESTAT's order, finding no legal infirmity. The assessee failed to show financial incapacity or valid excuse for non-compliance, leading to the dismissal of the appeal.This summary provides a detailed overview of the legal judgment, highlighting the key issues and outcomes at each stage of the case.