Indian Hydraulic Industries Pvt. Ltd. vs Collr. of C. Ex., New Delhi

Dr. M.K. Sharma, J.—This writ petition is directed against the miscellaneous order passed by the CEGAT, New Delhi, dismissing the application filed by the petitioners seeking modification of the order of stay and directing the petitioners to deposit the balance amount of pre-deposit to the tune of Rs. 2,73,945/-. The petitioners earlier filed an application before the Tribunal praying for waiver of pre-deposit and stay of recover of Rs. 3,53,745/- demanded as duty on seized goods out of which 2 were fully finished special purposes vehicles. In the said application filed by the petitioners before the Tribunal the petitioner further prayed for waiver of pre-deposit and stay of recovery of penalty of Rs. 1 lac imposed on the petitioners and also for the redemption fine of Rs. 3 lacs imposed on the seized goods (vehicles). The Tribunal, after hearing both the parties and considering the merits of the case and also the financial condition of the petitioners directed the petitioners vide order dated 13-9-1993 to pre-deposit the entire amount of duty of Rs. 3,53,745/- within a period of 12 weeks from the date of the order. It was further ordered by the Tribunal that in case the petitioners pre-deposited the aforesaid amount of Rs. 3,53,745/- the remaining amount towards penalty and redemption fine imposed by the adjudicating authority would stand waived during the pendency of the proceedings before the Tribunal. The Tribunal further directed that the aforesaid order of pre-deposit be complied within 12 weeks and fixed the matter for orders on 23-12-1993 for ascertaining compliance.

It is however, found on record that the petitioners failed to comply with the aforesaid orders passed by the Tribunal as ordered. Subsequently, however, the petitioners filed 3 miscellaneous applications praying for modification of stay order dated 13-9-1993. It was stated in the said applications that the petitioners had already deposited Rs. 79,000/- out of the total amount of Rs. 3,53,745/- directed to be deposited by the Tribunal as a pre-deposit. In the said applications it was further pleaded that the total duty amount could be much less and that there is calculation error and Therefore, the order requires modification by the Tribunal. The Tribunal, upon hearing both the sides and on going through the facts and circumstances of the case, by its Order dated 1-2-1995, came to the conclusion that the Tribunal had directed the petitioners to deposit Rs. 3,53,745/- out of which Rs. 79,800/- had already been paid and accordingly the balance of duty amount came to Rs. 2,73,945/- and that there is no justification for modification of the aforesaid Order passed on 13-9-1993. It appears from the aforesaid order passed by the Tribunal that the counsel appearing for the petitioners stated before the Tribunal that at least 3 month''s time may be given to enable the petitioners to pay the balance amount of Rs. 2,73,945/- to which the departmental representative did not object to. It further appears that on the basis of the aforesaid prayer made by the learned counsel appearing on behalf of the petitioner, the Tribunal, in the interest of justice granted three months'' time from 1-2-1995 for making payment of Rs. 2,73,945/- and directed the petitioners to report compliance to the Tribunal after 3 1/2 months from 1-2-1995.

We have heard Mr. Pradeep Jain, learned counsel appearing on behalf of the petitioners, who vehemently urged that it is a fit case where on the facts and circumstances of the case payment of the balance amount of the pre-deposit may be waived.

We have considered the submissions of the learned counsel for the petitioner and also the contents of the writ petition Along with the orders passed by the Tribunal. It is apparent from the records placed before us that by order dated 13-9-1993 the Tribunal directed for compliance of the order for pre-deposit within a period of 12 weeks from 13-9-1993. The said order was however, not complied with and instead three applications were filed for modification of the order dated 13-9-1993 after a substantial gap of time. From the impugned order dated 1-2-1995 we further find that on appreciation of the facts and circumstances of the case the Tribunal found no justification to modify the stay order passed by the Tribunal on 13-9-1993. However, as a prayer was made by the learned counsel for the petitioners to allow them 3 months time so as to enable them to deposit the balance amount of Rs. 2,73,945/-, the said prayer was allowed by the Tribunal allowing them 3 1/2 months time from 1-2-1995 to comply with the said order. In view of the aforesaid facts there is a clear waiver and estoppel on the part of the petitioners to agitate the matter further relating to payment of the balance amount pre-deposit as directed by CEGAT. The petitioners having led the Tribunal to believe that they would make the payment of the balance amount towards pre-deposit and taking advantage of extension of time for depositing the pre-deposit, cannot in out opinion turn back and further agitate the matter regarding payment of the balance amount of pre-deposit. That apart, the conduct of the petitioners in the present case in not depositing the balance amount towards pre-deposit after obtaining time to deposit the same [does] not justify any interference with the order by the Tribunal. In our opinion there is no error in the order passed by the Tribunal.

In that view of the matter, we hold that this writ petition has no merit and is accordingly dismissed.