2004 (2) TMI 573 - AT - Central Excise

Summary

Issues:
1. Stay application filed by Revenue in an appeal regarding issuance of CT-3 certificate to an EOU.
2. Grounds of appeal by Revenue against the order allowing issuance of CT-3 certificate.
3. Consideration of grounds by the Tribunal and decision on granting stay.

Analysis:
1. The Revenue filed a stay application in an appeal concerning the issuance of a CT-3 certificate to an EOU. The ld. Commissioner (Appeals) had ordered the officers to arrange for the issue of a fresh CT-3 certificate, noting that there was no provision in the Act to reject CT-3 to an EOU unless the EOU status is withdrawn/cancelled/surrendered. The EXIM Policy allows EOUs to procure duty-free raw material under specific rules, with liability for duty in case of misuse. The Tribunal considered the scope of Rule 6 and directed the immediate issuance of the certificate.

2. The Revenue raised several grounds of appeal against the order. Firstly, they argued that the EOU did not send the D-3 intimation by post or there was a delay of more than 15 days. Secondly, they claimed that proper records were not maintained based on their investigation. Lastly, they contended that CT-3 should not be issued under these circumstances, seeking a stay of the order.

3. After hearing both parties, the Tribunal found that the EOU had valid registration certificates, and no case was established against them. The Tribunal held that depriving an EOU of legitimate business based solely on investigations was not justified. The Tribunal noted that there was no duty or penalty to be deposited for a stay, and the inherent powers of the Tribunal should only be invoked in exceptional circumstances. As there were no strong grounds to warrant a stay, the Tribunal dismissed the stay application, emphasizing that the Department could take future actions for any misuse separately from the current appeal.