2007 (12) TMI 357 - AT - Central Excise

Summary

Issues: Extension of Stay Order, Seizure of Goods, Coercive Recovery by Revenue

Extension of Stay Order: The applicant sought an extension of the Stay Order due to the Revenue proceeding with recovery despite the initial Stay Order being in place. The Tribunal noted that the stay application had been allowed previously, granting a waiver of pre-deposit and staying the recovery. The Tribunal criticized the Revenue's actions of seizing goods as illegal and unwarranted when the stay application had been approved. Citing a previous Supreme Court case, the Tribunal emphasized its inherent powers to grant waivers and stay recoveries until the appeal's disposal. Consequently, the Tribunal granted an extension of the Stay Order and directed the Commissioner to lift the seizure order and return the goods to the appellants.

Seizure of Goods: The learned Consultant representing the appellant complained about the Revenue's order to seize goods and requested a direction to lift the seizure order. The Tribunal found the seizure to be unjustified and expressed displeasure at the Revenue's coercive actions. It deemed the seizure to be illegal, especially when the Stay Order was in effect, and the waiver of pre-deposit had been granted. The Tribunal ordered the immediate lifting of the seizure and the return of goods to the appellants, emphasizing that the Revenue should not recover amounts when a waiver has been granted and a Stay Order is in operation.

Coercive Recovery by Revenue: The Tribunal strongly criticized the Revenue for taking coercive steps to recover the amount despite the Stay Order being in place. It emphasized that such actions were unwarranted and expressed its disapproval of the Revenue's behavior. The Tribunal referenced previous judgments to highlight its authority to grant waivers and stay recoveries, reinforcing that the Revenue should not proceed with recovery when a waiver has been granted and a Stay Order is in effect. The Tribunal allowed the misc. application, granting an extension of the Stay Order and directing the Commissioner to lift the seizure order and return the goods to the appellants promptly.