2006 (1) TMI 506 - AT - Central Excise

Summary

Issues:
1. Recall of final order due to non-compliance of stay order.
2. Challenge against Department's direction on deposit of duty.
3. Restoration of appeals based on High Court's order.
4. Tribunal's decision in Appeal No. 941/04 being set aside.

Analysis:
1. The appellant sought the recall of a final order dismissing their appeal for non-compliance with a stay order. The stay order, issued by a circuit bench and the Hon'ble Vice-President, pertained to the deposit of duty by Payment of Duty through Licensed Account (PLA) rather than Cenvat credit. The issue was previously addressed in a Tribunal ruling involving Elson Packaging Industries Pvt. Limited v. CCE, Surat. Additionally, the appellant challenged the Department's directive to deposit the amount in PLA due to default in availing the fortnightly payment facility. The Kerala High Court accepted the appellant's pleas in a similar case and quashed the Tribunal's orders on the same issues.

2. The learned Counsel argued that following the High Court's order, the appeals needed to be reinstated to their original numbers. It was highlighted that the Tribunal had ruled against the appellant in Appeal No. 941/04, but this decision was overturned, making the High Court's order binding on the Bench.

3. After hearing the arguments, the Tribunal acknowledged that in the appellant's case, the Tribunal had previously ruled against them. However, the Kerala High Court had set aside this order and supported the appellant's position to deposit the duty through Cenvat credit. Consequently, the final orders in the appellant's case were recalled, and the appeals were restored to their original numbers. The appellant's request for recall was granted, and the appeals were scheduled for final hearing on 22nd February 2006.

4. The Tribunal's decision in Appeal No. 941/04, which had initially gone against the appellant, was revisited due to the High Court's intervention. The High Court's ruling in favor of the appellant's plea to deposit duty through Cenvat credit influenced the Tribunal to recall the final orders and reinstate the appeals to their original numbers for further proceedings. This decision was made after careful consideration of the legal positions and precedents involved in the case.

(Pronounced and dictated in open Court)