SPECIAL PRINTS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition challenges the orders dated 14/26th September, 2007 and 18th December, 2007 passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench, Ahmedabad (the Tribunal). The substantial relief claimed in the petition is as follows:

(2.) THE respondents had issued a show cause notice against the petitioner and Garden Silk alleging that they were related persons and that the petitioner had processed 10,24,92,878 L.Mt. of fabric for Garden Silk on job work basis during 1993 -98, hence the petitioner should have paid duty in terms of the wholesale price at which the yarn and processed fabrics were sold by Garden Silk. The respondent No. 2 Commissioner of Central Excise and Customs, confirmed the show cause notice and held that the petitioner was liable to pay duty to the tune of Rs. 21,37,51,202/ - for the period 1993 -98 as well as interest and penalty to the tune of Rs. 3,92,97,009/ - and Rs. 10,12,63,879/ - respectively. The petitioner preferred an appeal before the Tribunal. The appeal was accompanied by an application seeking waiver of pre -deposit of duty, interest and penalty amount. After hearing the learned Advocate for the petitioner the Tribunal held as follows:

(3.) THE learned Counsel for the petitioner assailed the impugned orders mainly on the ground that the Tribunal has not addressed itself to the issue of undue hardship as well as regarding the fact that the petitioner was registered as a sick unit with the BIFR. According to the learned Advocate for the petitioner, if the Tribunal had applied its mind to the petitioner having been registered as a sick industrial unit with the BIFR, the Tribunal would have dispensed with the entire pre -deposit. It was submitted that insistence on payment of such a huge sum of pre -deposit would amount to depriving the petitioner of the statutory right of appeal. In support of his submissions the learned Advocate for the petitioner placed reliance upon the following decisions: