2004 (3) TMI 552 - AT - Central Excise

Summary

Issues:
Claim for refund of duty liability on HDPE woven sacks manufactured through a job worker; rejection of refund claims; appeal against rejection pending with Tribunal; stay of operation of the order of the Commissioner (Appeals).

The case involved a claim for refund of duty liability on HDPE woven sacks manufactured by a job worker, M/s. Tirupati Packaging, who discharged the duty liability on the sacks. A CESTAT decision classified the sacks under Chapter 39 of the Central Excise Tariff Act, leading to refund claims. The job worker's refund claims were rejected, and the appeal against the rejection was pending with the Tribunal. Meanwhile, the respondents sought a refund on the same amount, claiming they had borne the duty incidence. The Assistant Commissioner rejected their claims, citing the pending appeal of the job worker. The respondents appealed to the Commissioner (Appeals), who allowed the appeal, setting aside the lower authority's order. The Revenue was dissatisfied and applied for a stay of the Commissioner (Appeals) order.

The Tribunal noted that in the given circumstances, the Revenue presented a compelling case for staying the operation of the Commissioner (Appeals) order. Consequently, the Tribunal granted a stay on the operation of the order of the Commissioner (Appeals) while the appeal was pending. This decision was made after considering the facts and circumstances of the case, acknowledging the strong case made by the Revenue for the stay. The Tribunal's decision aimed to maintain the status quo until the appeal process was completed, ensuring fairness and due process in the adjudication of the refund claims related to the duty liability on the HDPE woven sacks.