HINGORA INDUSTRIES PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) HEARD Mr. Mihir Joshi, learned Senior Counsel with Mr. S.N. Thakkar, learned advocate appearing for the petitioner and Mr. Harin P. Raval, learned Assistant Solicitor General appearing for the respondent on advance copy being served on him. Looking to the short issue involved in the petition, the same is taken up for final hearing.

(2.) THE petitioner has filed this petition under Article 226 of the Constitution of India challenging the order passed by the Custom, Excise and Service Tax Appellate Tribunal, Ahmedabad on 7.4.2008, directing the petitioner to deposit an amount of Rs.1 crore towards duty within a period of 12 weeks from the date of order. The petitioner was also directed to file compliance report on or before 2.7.2008.

(3.) MR .Joshi, learned Senior Counsel appearing for the petitioner has submitted that the order passed by the Tribunal directing the petitioner to deposit a sum of Rs.1 crore is very harsh and looking to the financial position of the petitioner it is not possible to deposit a sum of Rs.1 crore. He has further submitted that the petitioner has very strong case on merits and if the petitioner would not deposit the said amount the appeals which are pending before the Tribunal get frustrated. He has further submitted that while passing an order of deposit of sum of Rs.1 crore the Tribunal has not assigned any reason whatsoever, especially when the order under challenge before the Tribunal was in violation of the principles of natural justice. The petitioner has applied for time on 5.11.2007 and the petitioner was given to understand that the matter was fixed on 22.11.2007. The impugned order which was challenged before the Tribunal, however, was passed on 19.11.2007. He has, therefore, submitted that without considering this aspect of the matter, the Tribunal has passed the impugned order and hence this Court should exercise its writ jurisdiction under Article 226 of the Constitution of India granting necessary relief, as prayed for in the petition.