Castings (India) Inc. vs Union of India (UOI)

In the order dated 16th April, 2001, purportedly passed in terms of Section 35F the Central Excise Act, 1944 the Customs Excise & Gold (Control) Appellate Tribunal, Kolkata, has passed an order directing the petitioner to deposit an amount of Rs. 15 (fifteen) lacs and has further directed that subject to such deposit of the said amount, the appeal would be heard and that the petitioner would not be liable to pay the balance amount of duty or penalty inasmuch as the recovery for the balance amount has been directed to be stayed. The issue involved in the appeal relates to the exercise of option by the petitioner for payment of duty monthly on pro rata basis in terms of Rule 96ZP(3) of the Central Excise Rules. Undoubtedly, the respondents'' case is that the petitioner is liable to pay Rs. 38.41 lacs, out of which, it, having paid Rs. 13,46,505/-, was, accordingly to the respondents, liable to pay Rs. 25 lacs, the Tribunal, in exercise of its discretion conferred upon it by the proviso to Section 35F of the Central Excise Act, has decresed the amount, in so far as the payment u/s 35F is concerned and has restricted the same from Rs. 25 lacs to Rs. 15 lacs.

Upon hearing the learned Counsel for the parties. We find that no case for interference is made out. The petition is dismissed.

At this stage, Mr. Bajla, learned Counsel appearing for the petitioner, submits that the time fixed by the Tribunal for payment of Rs. 15 lacs is expiring on 10th. August, 2001 and that some extension be granted in favour of the petitioner to enable it to arrange the deposit a little later. We permit the petitioner to approach the Tribunal within one week from today with a request/prayer for suitable extension of time. We do wish to observe that the pendency of this petition in this Court is a valid ground, entitling the petitioner to pray to the Tribunal for extension of time. If such a prayer is made within one week from today, the Tribunal may consider the same on its merits and decide to grant suitable extension as would be appropriate in the facts and circumstances of the case.