KANISHK STEEL INDUSTRIES LTD. Vs. CESTAT, CHENNAI

JUDGEMENT

(1.) This Writ Petition is filed to quash the impugned order passed by the first respondent in Final Order No. 22/2007, dated 8-1-2007/Misc. Order No. 13/2007, dated 8-1-2007 and consequently direct the first respondent to hear the main appeal on merits without insisting on pre-deposit of duty and penalty.

(2.) The petitioner is engaged in the manufacture of MS Ingots falling under Chapter sub-heading 7206.90 of Central Excise Tariff Act, 1985. During the period from 1-9-1997 to 31-3-2000, the petitioner was operating under compounded levy scheme and paying the amount as per Sec. 3A of Central Excise Act, 1944 read with Induction Furnace Annual Capacity Determination Rules, 1997 and sub-rule (3) of Rule 96ZO of Central Excise Rules, 1944. Show cause notices have been issued regularly from Sept., 1997 to Aug., 1999 demanding differential duty along with penalty and interest. The petitioner preferred three appeals against the orders dated 22-6-1999, 30-6-2000 and 18-4-2001 passed by the second respondent before the CESTAT/1st respondent, who, on hearing the appeals remanded the case for de novo consideration.

(3.) The second respondent passed Order-in-Original No. 8/2006, dated 24-5-2005 demanding a sum of Rs. 35,66,107.00 towards differential duty and imposed penalty of Rs. 35,66,107.00 and also ordered recovery of interest at the rate of 18% provided under Rule 96ZO(3) of Central Excise Rules, 1944. The petitioner filed appeal against the above order before the first respondent along with stay application praying for waiver of pre-deposit of duty and penalty. The first respondent, after hearing the submissions made on both sides, passed an order in Stay Order No. 1076 of 2006, on 2-11-2006 directing the petitioner to pre-deposit Rs. 25 lakhs under Sec. 35F of the Central Excise Act within six weeks and to report compliance on 19-12-2006.