2006 (4) TMI 295 - AT - Central Excise

Summary

Issues: Stay application against attachment order under Central Excise Act, 1944.

Analysis:
1. The case involved a stay application against an attachment order issued by the Central Excise department, which was challenged through an appeal to the Commissioner (Appeals) and subsequently to the Tribunal.

2. The appellants had purchased a factory land from Rajasthan Financial Corporation, which was attached by the Revenue authorities due to a confirmed demand against the old factory owner, who had not paid the amount. The appellants argued that they were not liable to pay the demand.

3. The key argument made by the learned Advocate was to stop the auction of the attached land and building, scheduled for 19-4-2006. The contention was based on the request for interference to prevent the auction.

4. The learned D.R. argued that the power to grant stay is governed by Section 35F of the Central Excise Act, 1944, and the Tribunal does not have the authority to interfere in such matters.

5. The Tribunal, after considering the submissions, held that since there was no quantification of duty or penalty, the provisions of the Central Excise Act limited its jurisdiction. The Tribunal emphasized that it cannot go beyond the statutory provisions and that the appellants should have taken legal action earlier to restrain the authorities. Consequently, the application for stay was deemed infructuous and dismissed.

6. The judgment highlighted the statutory limitations on the Tribunal's power to grant stays under the Central Excise Act, emphasizing the need for parties to take timely legal action to address attachment issues effectively.