Suhas Textile Corporation vs Commissioner of C. Ex.

The petition arises from an order of the Customs, Excise and Service Tax Appellate Tribunal, West Zone Bench, Mumbai of 22 July, 2011 on an application for waiver of pre-deposit. The total demand of duty is Rs. 24.75 lakhs in respect of the textile machinery found to have been manufactured and cleared without payment of duty during the period from 1 April, 1995 to 24 November, 1998. A penalty has also been imposed u/s 11AC of the Central Excise Act. The Tribunal has considered whether a prima facie case has been made out as well as the issue of financial hardship. Noting that a payment of Rs. 3.75 lakhs has been deposited towards duty liability, the Tribunal has directed deposit of a further amount of Rs. 6.25 lakhs. The learned counsel submits that the Petitioner is not in a financial position to effect the deposit. We are of the view that since the Tribunal has considered both the aspects of a prima facie case and financial hardship as required, and since its reasoning is not shown to be perverse or to suffer from any error apparent on the face of record, the exercise of the writ jurisdiction is not warranted.

We accordingly decline to grant the relief as sought of waiving or reducing the pre-deposit order. However, in the circumstances we extend the time for compliance by a further period of three weeks from today. The petition is accordingly disposed of. There shall be no order as to costs.