M/s. Majestic Industries Ltd. vs Chief Commissioner of Central Excise and Another

A.M. Khanwilkar, C.J.—Heard counsel for the parties. Rule. Rule made returnable forthwith, by consent. Counsel for the respondents waives notice. Taken up for final disposal forthwith, by consent. This petition filed under Article 226 of the Constitution of India primarily takes exception to the decision of the Customs Excise & Service Tax Appellate Tribunal, dated 13th March, 2013, Annexure P-9, calling upon the petitioner to deposit the aggregate amount of Rs. 34.00 lacs, as pre-deposit amount, and rejecting the request of the petitioner for total waiver thereof.

The petitioner has placed reliance on the decision of the apex Court in the case of Sangfroid Remedies Ltd. Vs. Union of India (UOI) and Others, In that decision, the Court noted that the grievance of the appellant was that no notice was served on it and no opportunity was given before passing the impugned assessment order by the Assessing Officer. Secondly, the appellant was declared as a sick industry by the BIFR. Both these counts are applicable even to the present case. It was also argued by the counsel for the petitioner that besides the two counts on which the apex Court allowed the appeal, the petitioner would press one more ground that no penalty could be levied, much less exceeding Rs. 10,000/-.

Considering the above, we are inclined to set aside the impugned order and relegate the petitioner before the Appellate Tribunal for reconsideration of the request for total waiver of pre-deposit amount, on its own merits, in accordance with law.

We place on record that the counsel for the Revenue wanted to rely on the decision of the apex Court in Benara Valves Ltd. and Others Vs. Commissioner of Central Excise and Another, . However, that is the matter to be considered by the Appellate Tribunal. We are not expressing any final opinion on the merits of the issue regarding total waiver of the pre-deposit amount. All aspects in that behalf will have to be considered by the Tribunal, on their own merits, in accordance with law. The application for waiver of pre-deposit, which now stands restored to the file to its original number in terms of this order, will be taken up for hearing by the Tribunal on 15th July, 2013. The petitioner, through counsel, waives notice for hearing of that application before the Tribunal. The petition stands disposed of accordingly, so also the pending application(s), if any.