ORDER
Jyoti Balasundaram, Member (J)
1. The applicant seek modification of the stay order dated 30th July, 2001, by which pre-deposit of Rs. 40 lakhs, ordered to be recovery of modvat credit, was directed on the ground that they are a sick industrial company registered with the BIFR under the Sick Industrial Companies Act, 1985, and that their financial position has worsened since the passing of the stay order. In this connection they state that they have incurred losses of Rs. 26.57 crores up to 30th September, 2001. They are unable to pay interest to Banks and Financial Institutions, unable to pay salary and wages to their employees and are also unable to pay statutory dues such as Provident Fund, Employees’ State Insurance, etc.
2. The prayer is opposed by the learned DR on the ground that all the pleas raised now have been considered by the bench and taken into account while directing pre-deposit.
3. We have carefully considered the rival submissions. The fact that the applicant Company’s application to the BIFR was registered by the BIFR and their financial condition was kept in view while passing the stay order and no fresh grounds have been raised so as to warrant any modification. However, having regard to the losses incurred by the applicant we modify our order by directing that instead of cash deposit the applications shall furnish a bank guarantee for Rs. 40 lakhs to the satisfaction of the jurisdictional Commissioner within a period of eight weeks from today and report compliance on 7th January, 2002. The bank guarantee shall be kept alive till the disposal of the appeal.
4. The application is hence partly allowed.