2008 (2) TMI 726 - AT - Central Excise

Summary

Issues:
- Stay applications seeking waiver of pre-deposit of confirmed amounts
- Preliminary objection regarding the right to file cross-objections
- Revenue's recovery actions before stay applications are heard
- Justification of interim stay to prevent recovery during pending applications

Analysis:
The judgment by the Appellate Tribunal CESTAT, Bangalore, involved multiple issues regarding stay applications seeking waiver of pre-deposit of confirmed amounts. The Revenue had initiated recovery proceedings before the stay applications were heard, prompting objections and requests for interim stay from the appellants. The learned SDR raised a preliminary objection, citing the Revenue's right to file cross-objections, as the Commissioner had recently received the papers for review. The appellants' counsels acknowledged the need for time but sought an interim stay to prevent the Revenue from recovering the amounts until the stay applications were addressed.

Upon careful consideration, the Tribunal found the SDR's preliminary objection valid and directed the Registry to promptly send the Appeal Papers for scrutiny even before the scheduled hearing date. The Tribunal emphasized that the Revenue's actions to recover the amounts while stay applications were pending were unjustified. Consequently, the Tribunal ruled that the Revenue was prohibited from recovering the amounts until the stay applications were resolved. An interim stay was granted immediately, with instructions for the Registry to issue the order promptly. The SDR was served with the synopsis and written submissions filed by the counsels, and was directed to provide para-wise comments on the matters. The cases were scheduled for a hearing on 10th April 2008, with the Tribunal's decision pronounced and dictated in open court.