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CASE NO.: Appeal (civil)  426 of 2003

PETITIONER: M/s. Rattan Steel Works

RESPONDENT: Commissioner of Central Excise & Anr

DATE OF JUDGMENT: 01/02/2008

BENCH: ASHOK BHAN & DALVEER BHANDARI

JUDGMENT: JUDGMENT

O R D E R I.A.NO.2 IN CIVIL APPEAL NO.426 OF 2003

       Pursuant to a show cause notice dated 11th August 1998 to the appellant and the repl y  having been filed by it, the Commissioner of Central Excise, Chennai, imposed a duty of  Rs.23,51,646/- and a penalty of Rs.5,00,000/- on the appellant-firm and Rs.1,00,000/- on  its proprietor as individual penalty.           On an appeal filed by the appellant, Cutoms, Excise & Gold (Control) Appellate  Tribunal (now Customs, Excise & Service Tax Appellate Tribunal) [CESTAT], by an  order dated 17th July 2000, ordered payment of Rs.10,00,000/- as pre-deposit as a  condition precedent for hearing the appeal on merits within a period of three months.  It  was made clear that if the said amount is not deposited, the appeal filed before it shall  stand dismissed.  The appellant deposited only a sum of Rs.1,00,000/-.  The CESTAT,  however, on 19th January 2001, extended the time to deposit the amount by two months.   On 28th March 2001, the CESTAT dismissed the appeal for non-compliance of the order  of pre-deposit.   

I.A.No.2 in C.A.No.426/03 .... (contd.) - 2 -         Aggrieved by the said order, the appellant filed  a writ petition before the High Co urt  which was also dismissed by a learned Single Judge of the High Court on 20th September  2001.  However,  a period of twelve weeks was granted to deposit the remaining amount of  Rs.9,00,000/-.           The appellant filed an appeal before a Division Bench of the High Court.  The Divisi on  Bench, by the impugned order, dismissed the appeal, but, granted two weeks’ time to  deposit the amount of pre-deposit.  Against the said order, the appellant filed an appeal  before this Court by way of Special Leave Petition wherein leave has been granted and the  appeal is pending.         The appellant has now moved the present application for permitting the appellant to  deposit the remaining amount of pre-deposit, as ordered by the CESTAT so that the  appeal before the CESTAT is restored and heard.         Counsel for the appellant-applicant submits that the remaining amount of pre-deposit   will be deposited within three weeks.  In view of this statement, we accept this appeal and  set aside the orders of the Division Bench of the High Court, learned Single Judge of the  High Court as also that of the CESTAT and order that if the aforementioned remaining  amount of Rs.9,00,000/- is deposited within the said period, the appeal before  the   CESTAT  shall  stand  restored  and disposed of on  

I.A.No.2 in C.A.No.426/03 .... (contd.) - 3 - merits.  However, in case the appellant-applicant fails to deposit the said amount, the

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order passed by the CESTAT dismissing the appeal of the appellant shall remain in force  and consequently the present appeal shall also stand dismissed.         In view of the above, I.A.No.2 as also the civil appeal are disposed of.