CANTER PHARMACEUTICAL LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS case was posted for hearing of the Stay Application but after hearing both sides, it appeared that at this stage itself, the main appeal could be disposed of. On both sides agreeing, this was done after granting stay and waiver of the pre -deposit of the duty confirmed.

(2.) IN their appeal before the Commissioner (Appeals), the present appellants had requested for stay of the order of the Assistant Commissioner impugned before the Commissioner (Appeals). He did not invite the appellants for the hearing but made the following order: I find that the appellant has not made pre -deposit of duty amounting to Rs. 3,14,258 before filing the appeal as required under Section 129E of Customs Act, 1962. There is also no evidence to show that such pre -deposit would cause undue hardship to the appellant. I, therefore, find no ground to dispense with the requirement of making pre -deposit of duty Under Section 129E of Customs Act, 1962 and reject the appeal on technical reason for non -compliance with above statutory requirement, without going into the merits of the case.

(3.) THE Bombay High Court in their judgments in the case of Forte Chemicals v. CC held that where hearing of stay application was asked for but was not acceeded to, principles of natural justice were violated. On this ground the order impugned before the High Court was set aside. Following the judgment, we set aside the order impugned before us remitting the proceedings back to the Commissioner (Appeals) who will first give an opportunity to the appellants to state their case for waiver of the pre -deposit of duty. He will thereafter pass a reasoned order and thereafter proceed to decide the case on merits