SUPREME COURT OF INDIA

Before:-Dr. A.S. Anand, C.J.I., M. Srinivasan and R.C. Lahoti, JJ.

Civil Appeal No. 2541 of 1998. D/d. 10.9.1999.

Aarem Chemicals - Petitioner

Versus

Commissioner of C. Ex., Madurai - Respondent

Central Excise Act, 1944 Section 35L

JUDGMENT

Appeal admitted.

2. The Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT) vide order dated 8th January, 1998 remanded the matter to the Adjudicating Authority for quantification of correct duty, after giving deduction of the amounts mentioned in its order. While remanding the matter, the Tribunal also set aside penalty which had been imposed on partners of the firm, since, penalty of Rs. One lac had been imposed on the firm itself.

3. On 26th February, 1999 this Court issued a notice limited to the question as to why the issue of penalty be not left open till the matter is decided by the authorities after remand.

4. After hearing learned Counsel for the parties, we consider it appropriate to dispose of this appeal at this stage itself. We do not find any justification for interfering with the order of remand or the quantum of penalty imposed on the firm but in the facts and circumstances of the case it appears appropriate to us to direct that instead of making a deposit of Rs. One lac as penalty, the appellant should furnish a bank guarantee from a nationalised bank in the sum of Rs. One lac to the satisfaction of the Adjudicating Authority without prejudice to its rights in the remanded matter. The said bank guarantee shall be kept alive during the pendency of the case before the Adjudicating Authority. The appellant shall do the needful within eight weeks from today.

5. Nothing stated hereinabove shall however be construed as any expression of an opinion on the merits of the case.

6. The appeal is disposed of in the above terms. No costs.

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