2008 (6) TMI 448 - AT - Central Excise

Summary

Issues:
Implementation of order for pre-deposit and stay of recovery, appropriation of deposited amount against duty demand, refund of the appropriated sum.

Analysis:
The appellant sought implementation of an order directing a pre-deposit of Rs. 3 lakhs with a stay on recovering the balance amount until the appeal's disposal. Meanwhile, the appellant deposited Rs. 63,905 in compliance with another order related to a different appeal, which was later refunded but appropriated against the duty demand in the present appeal. The appellant argued that the stay on recovery prevented the appropriation. The Department claimed ignorance of the stay extension. The Tribunal held that even if the Assistant Commissioner was unaware of the stay extension, appropriation would contradict the Tribunal's order. Consequently, the Tribunal directed the authority to refund the Rs. 63,905 to the appellant within a week.

The Tribunal emphasized that despite any lack of communication regarding the stay extension, the Assistant Commissioner was not authorized to appropriate the deposited amount against the duty demand. Such an action would directly contravene the Tribunal's order, necessitating the refund of the sum to the appellant. The Tribunal's decision was based on upholding the integrity of its previous order and ensuring compliance with the directives concerning the pre-deposit and stay of recovery.

The application was disposed of by the Tribunal, with a clear directive for the concerned authority to refund the amount of Rs. 63,905 to the appellant promptly. The Tribunal's decision aimed to rectify the improper appropriation of the deposited sum against the duty demand, ensuring that the appellant was not unfairly burdened due to a misinterpretation or disregard of the Tribunal's orders. The Tribunal's ruling provided a fair and just resolution to the issue of the appropriated amount, safeguarding the appellant's rights and interests in the appeal process.