2006 (1) TMI 478 - AT - Central Excise

Summary

Issues:
Extension of stay order, Revenue's action to recover amount during stay order, applicability of Apex Court judgment on stay order.

Extension of Stay Order:
The appellants sought an extension of Stay Order Nos. 436-437/2004, dated 10-5-2004. Despite the Stay Order, the Revenue issued a letter threatening property attachment if the duty amount was not paid. The learned Counsel referred to the Apex Court judgment in CC & CE, Ahmedabad v. Kumar Cotton Mills (P) Ltd. [2005 (180) E.L.T. 434 (S.C.)], stating that the stay order of the Tribunal should be in force until the appeal's disposal. The Tribunal had remanded the matter for de novo consideration in the assessee's case, indicating that the issue was covered by the Tribunal's ruling.

Revenue's Action During Stay Order:
After hearing both sides, the Tribunal found the Department's action to recover the amount during the stay order contrary to the Apex Court judgment cited. Citing the same Apex Court judgment, the Tribunal extended the stay order until the appeal's disposal. The Tribunal directed the Revenue not to proceed with the recovery until the appeal's final disposal. The miscellaneous application for extension of the stay order was allowed, and the appeal was scheduled for final hearing on 30th January, 2006.

This judgment highlights the importance of respecting stay orders issued by the Tribunal until the appeal is disposed of, as per the Apex Court's ruling. The Tribunal emphasized that the Revenue should refrain from recovering the amount during the stay order period. The decision ensures fairness and adherence to legal procedures in matters related to duty payments and property attachment threats.