RAMAKRISHNA SALES P. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) EXEMPTION allowed subject to all just exceptions. C.M. stands disposed of accordingly. W.P. (C) Nos. 9632 -33/2005 9632 -33/2005 :

(2.) CHALLENGE in the present writ petition under Article 226 of the Constitution of India is to the order dated 15th April, 2005 passed by the Customs Excise and Service Tax Appellate Tribunal, vide which the stay application filed by the Petitioner was disposed of while directing the Petitioner to pay a sum of Rs. 2.5 crores against the demand of Rs. 5.3 crores, against both the Petitioners. The contention raised is that the various grounds which the Petitioner had taken up in the application filed for grant of stay including the financial hardships have not been appropriately considered by the Appellate Tribunal. It is submitted that the goods were cleared in the year 1996 -97 and thereafter the business of the Petitioner has practically slopped because of the heavy demand raised by the respondent which is arbitrary. It is also contended that the Petitioner has a good prima facie case and is likely to succeed before the Appellate Tribunal. On the other hand, the learned Counsel appearing for the Respondent states that the demand raised by the Department is relatable to the laws in force and the Petitioner is liable to pay the entire demand of Rs. 5.3 crores. It is further contended that the financial status of the Petitioner is no way a relevant consideration for reducing the amount of Rs. 2.5 crores directed to be paid by the Appellate Tribunal.

(3.) HAVING considered all these aspects, we are of the view that the Petitioner should be directed to pay an additional sum of Rs. 40 lakhs. If such an amount is deposited or paid, the appeal would be heard on merits and if such an amount is not deposited or paid, the Tribunal will be at liberty to proceed with the matter in accordance with law. Learned Counsel appearing for the Petitioner prays for three months' time to deposit the additional sum of Rs. 40 lakhs and submits that the appeal may not be dismissed for non -compliance of Section 129E of the Customs Act. In the interest of justice, we grant final opportunity to the Petitioner to deposit the additional sum of Rs. 40 lakhs within 8 weeks from today. If the said amount is not deposited within the stipulated time, the Tribunal may pass such orders as it may deem fit and proper. However, till expiry of 8 weeks, appeal would not be dismissed on account of non -compliance of the conditions.