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2006 (3) TMI 659 - AT - Central Excise
Issues:
1. Extension of stay order pending disposal of appeal. 2. Contention regarding appropriation of rebate claim against pending demands. 3. Violation of stay order and contempt of High Court order. 4. Appropriation of amount against other pending demands. 5. Legality of the appropriation order and refund of the amount. Extension of Stay Order: The Tribunal initially granted an unconditional stay, which was extended until the appeal's disposal. The extension order clearly indicated the stay's operativeness until the appeal's finalization. Despite the appeal being heard and pending for final disposal, the Excise department argued that the stay was not further extended. The department's attempt to appropriate the rebate claim against pending demands was seen as interference in the judicial decision-making process, and the Tribunal directed the department to refrain from recovery actions. Appropriation of Rebate Claim: The Assistant Commissioner sanctioned a rebate claim and adjusted it against the amount confirmed in the Order-in-Original, which was subject to the pending appeal. This action was deemed a violation of the stay order and in contempt of a High Court ruling that allowed stay until appeal disposal without the need for repeated extensions. The appropriation was considered unlawful, and the Assistant Commissioner was directed to refund the amount with interest. Legality of Appropriation Order: It was established through various Tribunal decisions that any amount due cannot be appropriated against other pending demands. The appropriation of Rs. 20.54 crores was deemed illegal and required to be set aside. The Assistant Commissioner was ordered to refund the amount that was unlawfully appropriated, along with applicable interest, as per the decision of the Tribunal. In conclusion, the Miscellaneous Application was allowed accordingly, emphasizing the importance of upholding legal procedures and respecting the stay orders granted by the Tribunal until the final disposal of appeals.
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