SAGARIKA ACOUSTRONICS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard.

(2.) By this writ petition, the petitioner seeks to impugn the two orders passed by the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai (hereinafter referred to as the Tribunal'). These two orders were passed by the Tribunal on 22nd August, 2005 and 16th November, 2005. By the order dated 22nd August, 2005, the Tribunal have rejected the petitioner's application for complete waiver of pre-deposit but partially granted the application by asking the petitioner to deposit a sum of Rs. 1,40,00,000/- towards duty. The petitioner was directed to pay the duty by 30th September, 2005. The petitioner was directed to report compliance which he did not and by the subsequent order dated 16th November, 2005, the Tribunal dismissed the appeals for non- compliance.

(3.) The contention of the learned counsel for the petitioner is that the petitioner-company is a sick industrial undertaking and that reference filed by the petitioner is pending before the BIFR under the Sick Industrial Companies (Special Provisions) Act, 1985 (for short Act of 1985'). The learned counsel would submit that since the petitioner is a sick industrial company, it brought to the notice of the Tribunal that undue hardship would be occasioned to the company, if they are directed to deposit any amount. He also submitted that since the order dated 22nd August, 2005 passed by the Tribunal did not specifically deal with this aspect, the application for modification was made but without disposing of the said application, the appeals have been dismissed by the order dated 16th November, 2005. It was, thus, submitted by the learned counsel for the petitioner that the Tribunal did not exercise its jurisdiction in accordance with the settled principles while considering the application for waiver of pre-deposit.