2008 (8) TMI 730 - AT - Central Excise

Summary

Issues: Stay application for waiver of pre-deposit and stay of recovery of interest for delayed payment of differential duty.

Analysis:
The appellant, M/s. Deccan Alloys (P) Ltd., filed a stay application seeking waiver of pre-deposit and stay of recovery of Rs. 3,18,905/- interest for delayed payment of differential duty. The impugned order by the Commissioner (Appeals) involved a batch of 18 appeals, mostly concerning interest due on differential duty. The appellant's case was based on clearing re-rolled products during April 2001 to February 2003, paying duty based on the sale price at the depot during clearance, and subsequently paying differential duty and interest on higher prices upon sale from the depot. The appellant argued that the interest demanded in the impugned order was not sustainable. The learned SDR agreed with the appellant's legal position.

Upon examination, the Tribunal found that the impugned order was passed without considering the material facts of the case and without hearing the appellants. It was deemed necessary for the lower appellate authority to hear the party on merits and make a fresh decision on the appeal. The Tribunal emphasized that the appellants must be given an opportunity for an effective hearing. Consequently, the appeal was allowed by way of remand, and the stay application was disposed of accordingly.

In conclusion, the Tribunal acknowledged the appellant's contentions regarding the interest demanded, highlighting the importance of due process and the right to be heard. The decision emphasized the need for a thorough consideration of material facts and ensuring a fair opportunity for the appellants to present their case before reaching a final judgment.