- (1.) This appeal has been preferred by the appellant under Section 35G of the Central Excise Act, 1944 (in short, "the Act") against the orders dated 3.7.2012 and 30.8.2012, Annexures A. 7 and A. 9 respectively in Appeal No. E/2462 of 2011 whereby the Customs Excise and Service Tax Appellate Tribunal, New Delhi (for brevity, "the Tribunal) has directed the appellant to deposit a sum of Rs 32 lacs as pre-deposit as a condition precedent for hearing the appeal alongwith Rs 10,000/- as costs. Following substantial questions of law have been claimed by the appellant:- "a) Whether impugned order is perverse and contrary to record b) Whether the learned Tribunal is justified to order appellant to deposit Rs 32 lacs when Rs 85 lacs already stands deposited as cash or bank guarantee c) Whether the learned Tribunal is justified to impose cost upon the appellant d) Whether the learned Tribunal is justified to order deposit when the appellant has strong prima facie case on merits e) Whether grave and palpable injustice would be caused to the appellants if the respondents are permitted to execute the legal order -
(2.) Briefly, the facts as narrated in the appeal may be noticed. The appellant is a private limited company having two manufacturing units i. e. one at Udyog Vihar, Gurgaon and another at Manesar, Gurgaon. During the years 2004-05, 2005-06, 2006-07 and 2007-08, the appellant availed Cenvat credit on capital goods/inputs and paid duty on finished goods. On 24.9.2008, officers of respondent No. 1 searched Unit No. 2 of the appellant and on physical verification, capital goods of the value of Rs 1,70,47,975/- involving Cenvat credit of Rs 35,80,142/- were found apart from stock of finished goods and raw material. The goods were seized under Section 110 of the Customs Act, 1962. Similarly on verification of stocks in Unit No. 1, finished goods were found in excess of the balance recorded. Accordingly, a show cause notice dated 23.3.2009 was issued to the appellant to pay a sum of Rs 57,37,690/- in respect of Cenvat credit availed on capital goods. The appellant submitted reply to the notice. After considering the matter, vide order dated 15.7.2011, Annexure A. 5, respondent No. 1 confirmed the duty amounting to Rs 57,37,690/-, disallowed Cenvat Credit of inputs amounting to Rs 24,21,464/- and denied credit amounting to Rs 7 lacs in respect of goods found short. Aggrieved by the order, the appellant filed an appeal before the Tribunal alongwith stay application in terms of Section 35F of the Act. Vide order dated 3.7.2012, Annexure A. 7, the Tribunal directed the appellant to deposit a sum of Rs 32 lacs as pre-deposit for hearing the appeal. The appellant filed an application for modification of the order dated 3.7.2012. Vide order dated 30.8.2012, Annexure A. 9, the Tribunal not only dismissed the application but imposed costs of Rs 10,000/- upon the appellant. Hence this appeal.
(3.) We have heard learned counsel for the appellant and perused the record.;