GARG INDUSTRIES Vs. U.O.I.

JUDGEMENT

(1.) Following a notice to show-cause dated 5 February 2007, the Additional Commissioner, Central Excise, NOIDA passed an order of adjudication on 26 April 2010 confirming a demand for central excise duty in the amount of Rs.17,25,261/- together with interest and imposing a penalty of Rs.17 lacs. The appeal was dismissed by the Commissioner (Appeals) on 30 September 2010. The petitioner lodged an appeal before the Customs Excise & Service Tax Appellate Tribunal. The Tribunal by its order dated 15 November 2011 granted a dispensation from the pre-deposit of duty and penalties. The appeal was fixed for final disposal on 7 February 2012. On 7 February 2012, the appeal was adjourned to 25 April 2012. On 25 April 2012 the Bench of the Tribunal was not available and hence, the appeal was adjourned to 17 September 2012 as directed by the President. On 17 September 2012 the Bench of the Tribunal has recorded that since the Bench would not be available in the post lunch session, the appeal should be listed in due course for arguments.

(2.) On 1 May 2014, the third respondent namely the Superintendent, Customs & Central Excise issued a notice to the petitioner, relying upon the amended provisions of sub-section (2A) of Section 35C of the Central Excise Act, 1944, stating that since the appeal had not been disposed of within the period stipulated, the stay which had been granted stood vacated. The petitioners were, therefore, called upon to deposit the outstanding amount failing which recovery proceedings would be initiated in accordance with law.

(3.) Sub-section (2A) of Section 35 C provides as follows:-