Full Judgment Text
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CASE NO.:
Appeal (civil) 4347 of 2002
PETITIONER:
PYLOFF PACKAGING PVT. LTD.
Vs.
RESPONDENT:
UNION OF INDIA & ORS.
DATE OF JUDGMENT: 29/07/2002
BENCH:
Syed Shah Mohammed Quadri & S.N.Variava.
JUDGMENT:
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
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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.