1. Dispute regarding payment of disputed excise duty for hearing an appeal, where the appellant is before BIFR and a prima facie case exists. (Para 2 )
Back
Next 
2000 Supreme(SC) 403
SUPREME COURT OF INDIA
B.N.Kirpal : R.P.Sethi
Vijay Packaging System Limited
Versus
Commissioner Of Customs And Central Excise, A.P.
Case No. : 1428 of 2000
Date of Decision : 2/18/00
The court ruled that the requirement to pay disputed excise duty for an appeal to be heard may be waived in the interest of justice if the appellant has a prima facie case and is before the statutory body for industrial and financial reconstruction.
Headnote:(A) Central Excise - Pre-deposit for appeal - Waiver of payment of disputed amount - Where the Tribunal has found a prima facie case and the appellant is before the statutory body for industrial and financial reconstruction, it is appropriate and in the interest of justice that the appeal be heard without requiring the payment of the disputed amount of excise duty. (Para 2)
Facts of the case:
An appeal was filed before the Tribunal regarding disputed excise duty. The Tribunal found that the appellant had a prima facie case, and the appellant was also appearing before the statutory body for industrial and financial reconstruction.
Findings of Court:
It is appropriate and in the interest of justice that the appeal be heard without the appellant being required to pay the disputed amount of excise duty.
Issues: Whether the appellant should be required to pay the disputed excise duty as a condition for the appeal to be heard by the Tribunal.
Ratio Decidendi: When a prima facie case is established and the party is undergoing proceedings before the statutory body for industrial and financial reconstruction, the requirement to pay disputed excise duty may be waived in the interest of justice.
Result: Appeal disposed of.
Legal Category Hierarchy
-
administrative law
-
taxation
-
excise duty
- pre-deposit for appeal (Para 2)
-
excise duty
-
taxation
Table of Contents
2. Whether the appellant is required to pay the disputed excise duty as a condition for the Tribunal to hear the appeal. (Para 2 )
3. The existence of a prima facie case and the appellant's proceedings before BIFR justify waiving the pre-deposit of excise duty in the interest of justice. (Para 2 )
4. Pre-deposit of disputed excise duty may be waived in the interest of justice if a prima facie case is established and the appellant is before BIFR. (Para 2 )
5. Appeal disposed of; Tribunal directed to hear the appeal without the appellant paying the disputed excise duty. (Para 2 , 3 )
6. Can the requirement to pay disputed excise duty be waived for hearing an appeal?
Yes, if the Tribunal finds a prima facie case and the appellant is before the BIFR, the court may waive the requirement to pay the disputed amount in the interest of justice. (Para 2 )
(1) SPECIAL leave granted.
(2) CONSIDERING the facts of the present case inasmuch as the Tribunal itself has found that the appellant has a prima facie case and the appellant is before BIFR, we are of the opinion that it will be appropriate and in the interest of justice if the appeal filed by the appellant before the Tribunal is heard without the appellant being required to pay the disputed amount of excise duty.
(3) THE appeal is disposed of. No costs.
