Tops Security Ltd. vs CESTAT, Chennai

N. Paul Vasantha Kumar, J.�Mr. V. Sundareswaran, learned counsel takes notice for the respondents. By consent, the main appeal itself is taken up for disposal. This Civil Miscellaneous Appeal is filed against the order passed by the Customs, Excise & Service Tax Appellate Tribunal, South Zonal Bench, Chennai (for short "CESTAT") in Final Order No. 40228 of 2013, dated 21-6-2013 in ST/201/2011 for non-compliance of the pre-deposit, which was ordered by the CESTAT vide order dated 18-2-2013.

It is seen from the records that pre-deposit was ordered by the CESTAT vide order dated 18-2-2013 to the tune of Rs. 57,68,642/- and part of the amount was deposited, however, balance amount of Rs. 15,60,234/- along with interest was not deposited by the appellant.

According to the appellant, non-remittance of the said amount of Rs. 15,60,234/- with interest was due to financial constrains and the time was extended up to 19-6-2013 by the CESTAT with a condition that if the appellant fails to deposit the said balance amount, no further time will be given. Admittedly, the appellant has not deposited the said amount of Rs. 15,60,234/-. Therefore, the CESTAT has dismissed the appeal in terms of the earlier order.

The learned counsel appearing for the appellant submitted that if further six weeks time is given to the appellant to deposit the balance amount of Rs. 15,60,234/- with interest, the appellant will be in a position to mobilize the funds and deposit the same and due to financial difficulties only the amount could not be deposited on time.

In this appeal, the appellant has raised the following substantial questions of law:-

(1) Whether the 1st respondent Tribunal was justified and correct in dismissing Appeal No. ST/201/2011 filed by the appellant for noncompliance with the stay order granted on 18-2-2013?

(2) Whether the 1st respondent Tribunal was correct in declining the request of the appellant for extension of time for compliance of the Tribunal''s stay order granted on 18-2-2013 and consequently dismissing the appeal for such non-compliance of the stay application i.e. Application No. ST/S/133/2011 when the appellant had already deposited Rs. 57,68,642/- i.e. the bulk of the balance dues and the remaining balance was only Rs. 15,60,234/- out of a total alleged liability of Rs. 2,95,63,511/-?

The learned counsel appearing for the respondents submitted that the CESTAT has extended the time by clearly stating that no further extension would be given and still the appellant has not deposited the balance amount of Rs. 15,60,234/- along with interest and therefore, the CESTAT was justified in dismissing the appeal for non-compliance of the order.

Considering the financial difficulties expressed and the submission of the learned counsel appearing for the appellant, we are of the view that the substantial questions of law raised above, can be answered in favour of the appellant by granting six weeks further time from today to deposit the balance amount of Rs. 15,60,234/- together with interest and on such deposit, the appeal shall be restored and dispose of the same in accordance with law. The Civil Miscellaneous Appeal is disposed of, as stated supra. No costs. Consequently, M.P. No. 1 of 2014 is closed.