KANPUR CIGARETTES LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) The petition under Article 226 of the Constitution of India challenges an order dated 22nd March, 1995 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi, under the proviso to Section 35F of the Central Excises and Salt Act, 1944, directing the petitioner M/s. Kanpur Cigarettes Limited to deposit Rs. 2,20,00,000/- towards duty and penalty levied on it.

(2.) The petitioner has filed an appeal before the Tribunal against an order dated 17th November, 1993, passed by the Collector of Central Excise, Delhi, whereby the latter levied Rs. 18,01,71,325/- as duty and also imposed a penalty of Rs. 1,80,00,000/-.

(3.) Under Section 35F of the Central Excises and Salt Act, 1944, the appellant has to deposit with the adjudicating authority the duty demanded or the penalty levied. Under the proviso to Section 35F of the Act, the appellate authority has the power to dispense with such deposit subject to such conditions, as it may deem fit to impose if it is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person.