By TIOL News Service

JAIPUR, MAY 29, 2015: AGAINST the order of the CCE, an appeal was filed before the CESTAT and vide order dt. 08.09.2014 the Tribunal directed the appellant to deposit 50% of the duty of customs and also of excise within a period of 8 weeks and report compliance on 11/11/2014.

Because of financial distress the appellant was unable to comply with order and so their appeal came to be dismissed by CESTAT on 08/12/2014.

The application for restoration of the appeal was allowed by the Tribunal vide order dt.09/03/2015 but the Bench permitted the Revenue to initiate recovery proceedings against the appellant.

The appellant is before the High Court and submits that pursuant to amendment made to s.35F of the CEA, 1944 from 06.08.2014, the pre-deposit stipulated is 7.5% and 10% respectively. That in other identical appeals, the Court, even in the case where the order has been passed prior thereto, has taken note of the amendment dt. 6th August 2014 and granted indulgence in Paramount Security through its Proprietor Vs. Union of India & Ors.(D.B. Civil Misc. Writ Petition No.12232/2014, considering the effect of newly substituted provisions of Section 35F with effect from 06.08.2014, taking note of the submission that the effect of the amendment cannot be restricted only for those appeals which are filed after 06.08.2014; that such a restriction will be violative of Article 14 of the Constitution.

Inasmuch taking note of the amendment introduced, the appellant informed that interim protection had been granted by the Court provided the appellant deposited 10% of the adjudicated amount in terms of the amendment of Sec. 35F; recovery proceedings in furtherance thereto have been kept in abeyance and that order has been relied upon by the coordinate Bench of the Court in DB Central Excise Appeal No.1/2015 & 7 other appeals dt. 12/02/2015.

The High Court viewed that there was no ground to take a different view than that taken by the Coordinate Bench in its order dt. 12/02/2015.

Directions were also given to issue notices to the Counsel appearing for the Central Excise Department.

As an interim direction, the High Court directed that the future recovery pursuant to order of the Tribunal dt.08/09/2014 shall remain stayed provided the appellant complies with the condition of pre-deposit under the amended provisions of Section 35F by depositing 10% of the adjudicated amount within a period of 10 days.

(See 2015-TIOL-1364-HC-RAJ-CUS)