High Court waives pre-deposit, directs quick appeal disposal.Waiver of pre-deposit - the learned counsel appearing on behalf of the respondents had submitted that the petitioner has been directed to pay the penalty, as he had abetted in the irregularities committed by the original assessee - Held that: the original assessee, namely, Visaka Industries Limited, had already paid nearly four and half crores, as pre-deposit for the hearing of the appeal filed by the said assessee - Decided in favor of the assessee... ... ... Issues: Challenge to order directing pre-deposit of penalty, Abetment in irregularities, Waiver of pre-deposit, Disposal of appeals

Challenge to order directing pre-deposit of penalty:
The petitioner filed a writ petition challenging the order directing them to pre-deposit a sum of Rs.4 lakhs towards penalty within six weeks. The counsel for respondents argued that the petitioner abetted in irregularities committed by the original assessee. It was highlighted that the original assessee had already made a substantial pre-deposit for the appeal. The counsel requested to waive the pre-deposit for the petitioner. The High Court set aside the pre-deposit order and directed the first respondent to dispose of the appeals filed by the original assessee and the petitioner within eight weeks from the date of the order.

Abetment in irregularities:
The counsel for respondents contended that the petitioner was directed to pay the penalty due to abetting in irregularities committed by the original assessee, Visaka Industries Limited. It was mentioned that Visaka Industries Limited had already paid a significant amount as pre-deposit for their appeal. The counsel requested the waiver of the pre-deposit for the petitioner based on this argument.

Waiver of pre-deposit:
The counsel for respondents urged that the pre-deposit directed for the petitioner should be waived considering the substantial pre-deposit made by the original assessee, Visaka Industries Limited. It was argued that since the original assessee had paid a considerable sum, the petitioner should not be burdened with additional pre-deposit. The High Court, after considering the submissions, decided to set aside the pre-deposit order for the petitioner.

Disposal of appeals:
The High Court directed the first respondent to dispose of the appeals filed by both Visaka Industries Limited and the petitioner in E/423 and 422/2009 on merits and in accordance with the law within eight weeks from the date of receipt of the order. This direction was given after setting aside the pre-deposit order for the petitioner and considering the arguments presented by the counsel for respondents during the hearing. The writ petition was allowed accordingly, with no costs imposed. Waiver of pre-deposit - the learned counsel appearing on behalf of the respondents had submitted that the petitioner has been directed to pay the penalty, as he had abetted in the irregularities committed by the original assessee - Held that: the original assessee, namely, Visaka Industries Limited, had already paid nearly four and half crores, as pre-deposit for the hearing of the appeal filed by the said assessee - Decided in favor of the assessee Natesan Engineers and Contractors Versus Customs, Excise, Service Tax Appellate
Customs
2012 (3) TMI 311 - MADRAS HIGH COURT - TMI
MADRAS HIGH COURT - HC
Dated:- 9-3-2012
Writ Petition No.5840 of 2012 - -
Customs
MR.JUSTICE M.JAICHANDREN, J. For Petitioner : Mr.A.Thiyagarajan For Respondents : Mr.K.Ravi Anantha Padmanabhan O R D E R Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondents. 2. This writ petition has been filed by the petitioner challenging the order of the first respondent, dated 8.12.2011, directing the petitioner to pre-deposit a sum of Rs.4 lakhs towards penalty, within a period of six weeks therefrom and to report compliance on 31.1.2012. 3. At this stage of the hearing of the writ petition, the learned counsel appearing on behalf of the respondents had submitted that the petitioner has been directed to pay the penalty, as he had abetted in the irregularities committed by the original assessee. He had also submitted that the original assessee, namely, Visaka Industries Limited, had already paid nearly four and half crores, as pre-deposit for the hearing of the appeal filed by the said assessee. Therefore, the pre-deposit directed to be made by the present petitioner may be waived. He had also submitted that the first respondent may be directed to dispose of the appeals filed by M/s.Visaka Industries Limited, and the present petitioner, in E/423 and 422/2009, within a period of eight weeks from the date of receipt of a copy of this order. 4. In view of the above, the pre-deposit directed to be made by the impugned order of the first respondent, dated 8.12.2011, is set aside. The first respondent is directed to dispose of the appeals filed by M/s.Visaka Industries Limited, and the present petitioner, in E/423 and 422/2009, on merits and in accordance with law, within a period of eight weeks from the date of receipt of a copy of this order. The writ petition is ordered accordingly. No costs.
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