GORADIA SPECIAL STEELS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule, returnable forthwith.

(2.) This petition filed under Article 226 of the Constitution of India is directed against the order dated 19th June, 2009 directing the petitioners to pre-deposit 50% of the Cenvat Credit amounting to Rs. 30,83,065/- (less Rs. 2,00,000/- already paid) and 50% of the penalties of Rs. 30,83,065/- and Rs. 30,00,000/- within eight weeks with compliance report on or before 26th August, 2009. On pre-depositing the said amount within the stipulated period, the balance amounts of Cenvat Credit and the penalties imposed were waived for the purposes of pre-deposit pending consideration of appeal filed by the appellant- petitioner herein. In default, consequences as indicated in the impugned order were to follow.

(3.) It appears that in compliance with the above order, the petitioners could deposit only Rs. 21,00,000/- towards Cenvat Credit liability and could not comply with the order with regard to the penalties. With the result, vide order dated 7th October, 2009, the order of stay came to be vacated and the appeals were dismissed for noncompliance of the order dated 19th June, 2009. Both orders are the subject matter of challenge in this petition.