(L. Nageswara Rao and Aniruddha Bose, JJ.)
Petition(s) for Special Leave to Appeal (C) No(s). 551-553/2021, decided on June 1, 2021
Sikkim Organics __________________________________ Petitioner;
v.
Union of India and Others ______________________ Respondent(s).
IA No. 59542/2021 – Exemption From Filing Affidavit IA No. 59541/2021 – Stay Application)
Petition(s) for Special Leave to Appeal (C) No(s). 551-553/2021; WPC No. 20/2018; IA No. 02/2019; IA No. 04/2019; IA No. 59542/2021; and IA No. 59541/2021
The Order of the court was delivered by
Order
1. The petitioner is a unit which manufactures industrial chemicals. A demand notice was issued on 08.04.2016 proposing classification of industrial chemical ‘Sikko Sol’ under sub-head No. 2710 1213 of the Central Excise Tariff Act, 1985 having Central Excise duty @ 16% Adv + Rs. 15/- per litre prior to 17.3.2012 and thereafter @14% Adv. An amount of Rs. 33,77,95,151/- was levied on the petitioner for the period from 01.04.2011 to 31.12.2015. The demand was confirmed by the Adjudication Order dated 06.02.2017. The petitioner filed an appeal before CESTAT which was dismissed for non-compliance of deposit of 7.5% of the demanded amount under Section 35(f) of the erstwhile Central Excise Act, 1944. The petitioner challenged the order of CESTAT before the High Court. The writ petition filed by the petitioner was dismissed on 04.03.2019 against which this special leave petition is filed.
2. A notice was issued under Section 174(2)(e) of the Central Goods & Service Tax Act, 2017 on 02.02.2021, for initiation of process of recovery. On 22.02.2021, the raw material/finished goods, movable and immovable properties were attached. Plant and machinery was also attached. Learned counsel for the petitioner submitted that the amount of Rs. 2.53 crores was deposited by 28.10.2020. He further submitted that the delay in depositing the amount may be condoned and the appeal filed before the CESTAT may be directed to be heard on merits.
3. Mr. Balbir Singh, learned Additional Solicitor General conended that demand is to the tune of Rs. 100 crores. The deposit of the amount which is a precondition for entertaining the appeal by CESTAT was done only after the writ petition filed by the petitioner was dismissed by the High Court. The learned ASG submitted that the appeal before the CESTAT may be restored subject to imposition of certain terms.
4. Having regard to the facts and circumstances of this case, we deem fit and proper in the interests of justice to restore the appeal before the CESTAT which shall be decided on its own merits.
5. The petitioner shall give an undertaking that it shall neither alienate movable or immovable property nor create third party rights. We are informed by the learned counsel for the petitioner that the bank accounts of the Unit are frozen. The respondents are directed to de-freeze the bank accounts and the petitioner shall undertake to utilize it only for the purpose of his business.
6. The Special leave petitions stand disposed of. Pending application(s), if any, shall stand disposed of.
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