2006 (9) TMI 428 - AT - Central Excise

Summary

Issues: Extension of stay order, attachment of excisable goods, pre-deposit requirement

Extension of Stay Order:
The case involved an application for the extension of a stay order granted to the appellants, which did not have a time fixation. The Central Excise authority had attached excisable goods worth Rs. 24.00 lakhs belonging to the appellants' unit after the expiry of six months from the date of the initial stay order. The appellants sought an extension of the stay order and requested the lifting of the attachment on the goods.

Attachment of Excisable Goods:
The appellants cited relevant case laws to support their argument for extending the stay and lifting the attachment on the goods. They referred to a decision of the Gujarat High Court and a case law where in similar circumstances, the stay had been extended, and the attachment on goods was lifted, with directions to re-deposit the encashed Bank Guarantee. The legal position clarified that when a stay is granted in an appeal, it is deemed to be pending until the appeal is disposed of.

Pre-Deposit Requirement:
Considering the legal position and the facts of the case, the Tribunal extended the stay from the date of its expiry in the earlier order. The appellants were directed to make a further pre-deposit of Rs. 2.00 lakhs to safeguard the interest of revenue and ensure the smooth functioning of the appellants' unit. This pre-deposit was necessary for raising the attachment on the excisable goods. The Tribunal ordered the deposit to be made within four weeks and compliance to be reported by a specified date. Upon the deposit and compliance report, the attachment on the excisable goods would be lifted, allowing the appellants to dispose of the goods as per the law.

This detailed judgment by the Appellate Tribunal CESTAT, KOLKATA addressed the issues of extending the stay order, dealing with the attachment of excisable goods, and imposing a pre-deposit requirement in a comprehensive manner, ensuring the interests of both the revenue and the appellants were considered and balanced effectively.