VAIBHAV AUTO INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has challenged the order dated 9-9-2014 as at Annexure - 'N' to the petition. Under the said order, the Customs, Excise & Service Tax Appellate Tribunal ('the Tribunal' for short) reduced the condition of pre-deposit from Rs. 1 crore to Rs. 60 lacs for hearing of appeal of the petitioner on merits. Learned counsel Shri Dave for the petitioner submitted that the petitioner has very arguable points in the appeal before the Tribunal. The petitioner-unit also suffers from acute financial hardship. Considering such factors, the Tribunal ought to have fully waived pre-deposit requirement. However, in the facts of the present case, we are not inclined to entertain such contentions. Our reasons are as follows: Earlier, the petitioner, before the Tribunal had preferred application for pre-deposit waiver. On such application, the Tribunal had passed an order dated 11-7-2013 directing the petitioner to deposit 50% of the duty confirmed by the adjudicating authority, within twelve weeks from the date of the order. This amount came to nearly Rs. 1.65 crores. The petitioner thereupon applied for modification of such order on the ground that the petitioner's representative could not remain present when the earlier order was passed, due to which, relevant documents could not be pointed out to the Tribunal nor proper submissions could be made. The Tribunal disposed of such application by an order dated 24-10-2013 recording that the petitioner had sought adjournment thrice. Such requests were granted. Despite which, there was no representation on the part of the petitioner. The Tribunal, therefore, while not modifying the condition, granted extension for complying with such conditions, as prayed for, by the petitioner.

(2.) The petitioner thereupon filed Special Civil Application No. 590 of 2014 and prayed for indulgence. While recognizing that the Tribunal was justified in proceeding ex parte, looking to the sizeable amount required to be deposited by the petitioner by way of pre-deposit, this Court, on 6-3-2014 [: 2015 (315) E.L.T. 400 (Guj.)] in the said petition, passed following order:

(3.) The petitioner thereupon was required to appear before the Tribunal on 21-4-2014. Nobody remained present on behalf of the petitioner. The consultant of the petitioner sent a letter dated 19-4-2014 showing his inability to remain present but raised grounds in support of the application for waiver of pre-deposit. The Tribunal therefore closed the stage of hearing. The Tribunal passed order on 1-5-2014. After recording reasons and noting, non-appearance by or on behalf of the petitioner, the Tribunal reduced the requirement of pre-deposit to Rs. 1 crore. In such order, the Tribunal noted that even before the adjudicating authority, there was no further participation by the petitioner. Considering such aspects, the Tribunal passed following order: