M/s. Sagar Engineering Works vs Commissioner of Central Excise

Rajive Bhalla, J.—The appellant prays for setting aside order dated 20.05.2013 passed by the Central, Excise & Service Tax Appellate Tribunal (hereinafter referred to as CESTAT whereby relief with respect to pre-deposit of the amount demanded by the Excise department, has been granted in part. Counsel for the appellant submits that the appellant has been using the brand in question since 1978 and, therefore, the demand raised by the respondents is not only unwarranted but has been raised without application of mind or considering the entire material on record. It is prayed that the order requiring the appellant to deposit Rs. 30 lacs, is onerous as the appellant is a small scale unit and cannot possibly deposit Rs. 30 lacs. In case the appellant deposits Rs. 30 lacs, it irretrievably impair the appellant''s business.

Counsel for the respondent submits that the impugned order is neither illegal or void nor does it require interference. It is further submitted that as the appellant has been granted a concession by the Tribunal, the appeal should be dismissed for want of an error of jurisdiction or question of law requiring interference. We have heard counsel for the parties, perused the impugned order as well as examined the controversy on merits but are of the opinion that the appellant has not been able to make out a case for stay of the entire amount demanded by the respondent. As is apparent from the impugned order, the Tribunal has already reduced the amount of pre-deposit to Rs. 30 lacs but while doing so did not consider that the appellant is a small scale unit and payment of sum of Rs. 30 lacs would necessarily impair the financial well-being of the unit. We, therefore, allow the appeal in part, modify the impugned award and direct the appellant to deposit Rs. 20 lacs including the amount of Rs. 15 lacs already deposited pursuant to order dated 20th June, 2013, on or before the date of appearance. Parties are directed to appear before the CESTAT on 02.09.2013. The CESTAT shall make every endeavour to decide the case within four months of the aforesaid date.