BASANT PAPER MILLS LTD Vs. CEGAT

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India the petitioner challenges an order dated 25th July, 1995 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi, whereby it partly allowed an application moved by the petitioner under the proviso to Section 35F of the Central Excises and Salt Act, 1944 and directed it to deposit only a sum of Rs. 5,00,000/- towards excise duty of Rs. 10, 21,617.90 and penalty of Rs. 5,04,0007-.

(2.) I have heard the learned counsel for the petitioner and Shri Shishir Kumar, learned standing counsel for the Union of India. The Collector, Central Excise, Allahabad passed an order dated 22nd November, 1994, levying the aforesaid amounts on the petitioner, who has filed an appeal to the Tribunal being Appeal No. E/17/95-A. Section 35F of the Central Excises and Salt Act requires the appellant to deposit with the adjusting authority, the duty demanded or the penalty levied before the appeal can be disposed of. The proviso to Section 35F however permits the appellate authority to dispense with such deposit if it is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person. The Tribunal in exercise of the powers under this proviso has partially waived the condition of pre-deposit and directed the petitioner appellant to deposit only Rs. 5,00,000/" as against the demand of over Rs. 15,00,000.00.

(3.) It was contended before the Tribunal that the order appealed against was made in violation of the principles of natural justice and the appellant was not allowed a proper opportunity of hearing. The Tribunal found that the petitioners had not made out prima facie case in their favour on this account. As regards financial hardship, the Tribunal has observed that no arguments were addressed to it on this ground and no documents to reflect their present financial position had been produced.