Pre-deposit extension under excise law granted with staged compliance despite weak showing of bona fides

Time for making the pre-deposit and furnishing the bank guarantee under Section 35F of the Central Excises and Salt Act, 1944 was sought to be extended, but the request for instalments was not supported by demonstrated bona fides because no deposit had been made even as a token of good faith after the earlier time expired. The authority nevertheless granted some indulgence in view of the substantial amount involved and extended the time for furnishing the bank guarantee, while directing staged deposit of the balance by the revised deadlines.

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Issues: Whether the time for making the pre-deposit and furnishing the bank guarantee under Section 35F of the Central Excises and Salt Act, 1944 should be extended.

Analysis: The time fixed earlier had expired, and no deposit had been made even as a token of bona fides. The request for instalments and further time was not supported by any demonstrated bona fides, though the substantial amount involved warranted some indulgence.

Conclusion: The time for furnishing the bank guarantee was extended till 31-5-1996, and the appellant was directed to deposit Rs. 2.5 crores by 31-5-1996 and the balance by 30-6-1996.

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