2007 (5) TMI 488 - AT - Central Excise

Summary

Issues: Stay order extension, Recovery of amount by Revenue, Linking appeals for final hearing.

Analysis:
1. Stay Order Extension: The appellant's counsel requested an extension of the stay order granted by the Tribunal due to the Revenue's appeal. The learned DR argued that the stay order was valid for 180 days, justifying the Revenue's action in serving a recovery letter. The appellant relied on Rule 41 of the CESTAT (Procedure) Rules and the judgment in CC & CE, Ahmedabad v. Kumar Cotton Mills (P) Ltd. The Tribunal agreed with the appellant's contention, stating that the Department should not have issued the recovery letter while the matter was listed for final hearing. The Tribunal invoked its inherent power to grant an extension of the stay order until the disposal of the appeal, in line with the Apex Court judgment.

2. Recovery of Amount by Revenue: Despite the stay order issued by the Tribunal, the Superintendent of Customs & Central Excise threatened to recover the amount from the appellant. The Tribunal found this action unjustified, emphasizing that the Revenue is prohibited from recovery until the appeal is disposed of. The Tribunal directed the Registry to issue an order immediately, instructing the Revenue not to proceed with recovery until the appeal's final disposal. The Stay Order No. 1207 to 1211/2006 was to remain in operation as per the Apex Court's judgment.

3. Linking Appeals for Final Hearing: The Tribunal ordered the linking of the appellant's appeal with the Revenue's appeal for final hearing. The matter was scheduled for a final hearing on a specified date. The Tribunal's decision aimed to ensure a fair and comprehensive resolution of the issues raised by both parties. The directive to link the appeals and set a hearing date demonstrated the Tribunal's commitment to procedural fairness and efficient case management.

In conclusion, the Tribunal's judgment addressed the stay order extension, the unjustified recovery action by the Revenue, and the procedural step of linking the appeals for a final hearing. The decision upheld the appellant's rights by granting an extension of the stay order and preventing the Revenue from recovering the amount until the appeal's disposal. The Tribunal's proactive measures ensured a fair and orderly resolution of the legal dispute between the parties.