Annapurna Malleables Pvt. Ltd. Vs. Collr. of C. Ex. - Court Judgment

Excerpt:
1. it is observed that in this matter stay order no. s/185-186/96, dated 26-4-1996 has been passed and the appellant was required to deposit a sum of rs. 45,000/- as ordered by the bench on that date.2. since the appellant did not comply a notice under section 35f was issued to them asking them to report compliance failing which their appeal would be liable to be dismissed without further notice.3. in response the appellants have moved a modification application requesting for modification of the aforesaid stay order insofar as it relates to the appeal no. e/202 & 203/96-nb.4. the ld. representative of the appellants stated that the appellant is a state government undertaking of madhya pradesh government. it was declared as a sick unit by bifr and the state government also declared it as a relief undertaking i.e. an undertaking to which relief was required to be extended.5. on the last occasion when the matter came up before the bench they were granted only partial relief as at that time the balance sheet had not been produced.6. they have since filed a profit and loss account for the year ending 31-3-1995 which shows carried forward cumulative loss as rs. 5,49,31,5507-approximately. he would also like to draw attention to a gazette notification issued by the madhya pradesh government dated 16th august, 1995 (published on 8th september, 1995) which extends the period of operation of the notification dated 4th june, 1994 for a further period of one year and amend the said notification as below: "in the said notification in paragraph 2 for the word "one year" the words "three years" shall be substituted." by virtue of this notification the undertaking continues to be a relief undertaking i.e. which requires the help of the state government to be able to run.7. it was his request that these facts may be taken into consideration and the order may be suitably modified.8. ld. dr stated that he has seen the profit and loss account filed by the other [party] but would like to still maintain that the appellants may be required to deposit the amount as already ordered in the aforesaid stay order.9. i observe that admittedly this state undertaking is a sick unit as already observed by the bench in its order dated 26-4-1996. the profit and loss account produced before us shows that their financial position is still very bad. therefore, taking note of the bifr order and the gazette notification of the madhya pradesh government shown by the ld.representative, and the financial position, i modify the aforesaid stay order to the extent it is applicable to the present case and waive the pre-deposit of the amount in question during the pendency of the appeal.

Judgment:
1. It is observed that in this matter Stay Order No. S/185-186/96, dated 26-4-1996 has been passed and the appellant was required to deposit a sum of Rs. 45,000/- as ordered by the Bench on that date.

2. Since the appellant did not comply a notice under Section 35F was issued to them asking them to report compliance failing which their appeal would be liable to be dismissed without further notice.

3. In response the appellants have moved a modification application requesting for modification of the aforesaid stay order insofar as it relates to the Appeal No. E/202 & 203/96-NB.4. The Ld. Representative of the appellants stated that the appellant is a State Government undertaking of Madhya Pradesh Government. It was declared as a SICK UNIT by BIFR and the State Government also declared it as a relief undertaking i.e. an undertaking to which relief was required to be extended.

5. On the last occasion when the matter came up before the Bench they were granted only partial relief as at that time the balance sheet had not been produced.

6. They have since filed a Profit and Loss Account for the year ending 31-3-1995 which shows carried forward cumulative loss as Rs. 5,49,31,5507-approximately. He would also like to draw attention to a Gazette Notification issued by the Madhya Pradesh Government dated 16th August, 1995 (published on 8th September, 1995) which extends the period of operation of the notification dated 4th June, 1994 for a further period of one year and amend the said notification as below: "In the said notification in paragraph 2 for the word "One Year" the words "Three Years" shall be substituted." By virtue of this notification the undertaking continues to be a relief undertaking i.e. which requires the help of the State Government to be able to run.

7. It was his request that these facts may be taken into consideration and the order may be suitably modified.

8. Ld. DR stated that he has seen the Profit and Loss Account filed by the other [party] but would like to still maintain that the appellants may be required to deposit the amount as already ordered in the aforesaid stay order.

9. I observe that admittedly this State Undertaking is a sick unit as already observed by the Bench in its order dated 26-4-1996. The Profit and Loss Account produced before us shows that their financial position is still very bad. Therefore, taking note of the BIFR order and the Gazette Notification of the Madhya Pradesh Government shown by the ld.Representative, and the financial position, I modify the aforesaid stay order to the extent it is applicable to the present case and waive the pre-deposit of the amount in question during the pendency of the appeal.