2004 (3) TMI 569 - AT - Customs

Summary

Issues Involved:
1. Vacation of stay order regarding refund of pre-deposit and grant of interest.
2. Reference application filed by Revenue against grant of interest.
3. Jurisdiction of the Tribunal to modify/reverse/alter stay order.

Analysis:

Issue 1: Vacation of Stay Order and Grant of Interest
The Tribunal initially stayed the operation of its final order, which held that the demands were barred by limitation. The assessee filed a refund application for the pre-deposit made in compliance with the stay order. The Tribunal, in its subsequent order, directed the grant of interest to the assessee from a specific date until the refund order date. The Revenue filed a reference application against the grant of interest, leading to the application for stay of the Tribunal's interest payment order.

Issue 2: Reference Application by Revenue
The Revenue's reference application challenged the Tribunal's decision to grant interest to the assessee. Pending the reference before the High Court, an application for stay of the Tribunal's interest payment order was made and granted. This action was taken to address the dispute regarding the interest payment directed by the Tribunal.

Issue 3: Jurisdiction of the Tribunal
The Tribunal, upon hearing both sides, concluded that the application seeking vacation of the stay order lacked merit. It was emphasized that a stay order issued by a co-ordinate Bench cannot be altered by another Bench of equal jurisdiction. Additionally, the applicants failed to provide sufficient grounds to support their request for a stay. Consequently, the Tribunal dismissed the application seeking vacation of the stay order regarding the grant of interest to the assessee.

In summary, the judgment addressed the issues related to the vacation of a stay order, the grant of interest, a reference application by the Revenue, and the Tribunal's jurisdiction to modify stay orders. The decision highlighted the importance of jurisdictional constraints and the necessity for substantial grounds to support requests for altering previous orders.