2010 (4) TMI 580 - HC - Central Excise

Court sets aside pre-deposit order, directs reduced amount, emphasizes compliance.

The High Court set aside the Tribunal's order requiring a 50% pre-deposit for hearing an appeal, citing lack of evidence and financial hardship for the ... Pre-deposit as a condition precedent to hearing of the appeal – Dismissal of appeal on the ground of non-deposit of such sum - petitioner urges two points (i) Revenue had no evidence at all to prove the case against him (ii) financial hardship - he is a goldsmith and does not have the financial resources to deposit Rs. 5,00,000/- Tribunal has not evaluated this case, before fixation of pre-deposit. Issues involved:1. Pre-deposit as a condition precedent to hearing of an appeal.2. Reduction or dispensing with the pre-deposit based on prima facie case and financial hardship.3. Delay in prosecuting the writ application.4. Setting aside the Tribunal's orders and directing the appeal to be heard on merits with a reduced pre-deposit amount.5. Disposal of the writ application.Analysis:1. The writ petitioner challenged the Tribunal's order requiring a pre-deposit as a condition for hearing the appeal, which was set at 50% of the penalty amount. The petitioner argued for a reduction or waiver of the pre-deposit based on two grounds: lack of evidence by the Revenue to prove the case and financial hardship as the petitioner, a goldsmith, could not afford the deposit. The High Court noted that the Tribunal did not properly evaluate the petitioner's case before fixing the pre-deposit, causing undue hardship by dismissing the appeal due to non-compliance with the deposit requirement.2. Despite a significant delay in prosecuting the writ application, the High Court intervened by issuing notice to the Ministry of Law & Justice. The Court criticized the Ministry's lack of representation and the absence of filed affidavits by the respondents. The High Court set aside the Tribunal's orders and directed the appeal to be heard on merits. A reduced pre-deposit of Rs. 1,00,000 was ordered to be made by the petitioner within eight weeks. Failure to comply would result in the Appellate Tribunal taking necessary legal steps. The appeal was deemed restored and pending, with a directive for the Tribunal to dispose of it within three months of the order's communication.3. The writ application was ultimately disposed of, with all parties instructed to act on a signed copy of the order and to comply with necessary formalities for obtaining a certified copy. The High Court's decision aimed to address the petitioner's concerns regarding the pre-deposit requirement, ensuring a fair hearing of the appeal based on the merits presented.This detailed analysis covers the key issues addressed in the judgment, providing a comprehensive understanding of the High Court's decision in the case.