Pyloff
Packaging Pvt. Ltd. Vs. Union of India & Ors [2002] Insc 311 (29 July 2002)
Syed
Shah Mohammed Quadri & S.N.Variava. Syed Shah Mohammed Quadri, J.
Heard
learned counsel for the parties.
Leave
is granted.
This
appeal is from the final order passed by the High Court of Judicature at Bombay in Writ Petition No.2368 of 2001 on
November 6, 2001. By the said order a Division Bench
of the High Court directed the appellant to deposit 25% of the amount of duty
[which is the subject-matter of appeals in respect of twenty two show cause
notices pending before the Commissioner of Central Excise (Appeals), Bombay,
the fifth respondent], by way of pre-deposit.
The
facts, insofar as they are relevant for disposal of this appeal, may be noticed
here. On May 2, 1994, the appellant was issued a show
cause notice by the Additional Commissioner of Central Excise, Bombay-III, the
third respondent, invoking extended period raising a demand of Rs.4,82,280.11
on various grounds (covering the period from April 1, 1989 to July
31, 1993). That notice
was replied to by the appellant and the matter was pending consideration before
the third respondent. The Superintendent, Central Excise served various notices
on the appellant on different dates (they are twenty one in number) raising a
total demand of Rs.50,26,029.89 to show cause to the Assistant Collector of
Central Excise, Division-X, Bombay. Six out of the twenty one cases were
pending before him after remand. While so, on March 23, 2001 and March 27,
2001, the case relating to show cause notice dated May 2, 1994 was taken up for
consideration by the third respondent who, however, adjudicated the said twenty
show cause notices also and confirmed the demand raised in all the twenty two
cases by order dated March 30, 2001. Dissatisfied with the said order, the
appellant filed appeal before the fifth respondent herein and also sought
waiver of the pre-deposit of the amount in demand. The fifth respondent ordered
that the whole amount of duty, namely, Rs.55,08,310 and penalty of Rs.5,00,000
be deposited within 15 days. The appellant assailed that order in Writ Petition
No.2368 of 2001 before the High Court of Judicature at Bombay. By the impugned order dated November 6, 2001, the High Court reduced the amount
of pre-deposit to 25% of the amount of duty in question in all the appeals. It
is that order of the High Court which is brought under challenge in this
appeal.
An
order declining to grant waiver of pre-deposit or a percentage thereof is a
discretionary order and this Court would not ordinarily interfere in such an
order. It is only in the rarest of the rare case, when due to improper exercise
of discretion, the interests of justice get defeated that this Court would
grant appropriate relief. From the facts stated above, it is evident that
though the case under consideration of the third respondent was in respect of
show cause notice dated May
2, 1994, in the final
order he, however, proceeded to confirm the demand which was the subject-matter
of all the twenty two show cause notices. In such a case, the amount in
question in all the twenty two appeals should not be the basis to counter the
question of pre- deposit. In our view, a sum of Rs.4,82,280.11 deposited by the
appellant pursuant to the interlocutory order of this Court dated January 25,
2001and which represented the amount in demand pursuant to show case notice
dated May 2, 1994, would be sufficient compliance of
requirement of pre-deposit in the bunch of appeals and would also meet the ends
of justice. The impugned order of the High Court varying the order of the
Commissioner of Central Excise (Appeals), Bombay, is accordingly modified. The fifth respondent is directed to dispose
of the appeals in accordance with law uninfluenced by any observations made by
this Court in this order. The appeal is accordingly allowed. No costs.
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