2009 (4) TMI 573 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT in New Delhi, comprising of Justice R.M.S. Khandeparkar and Shri M. Veeraiyan, heard an appeal represented by Shri B.L. Narsimhan, Advocate, for the Appellant and Shri A.K. Rastogi, DR, for the Respondent. The applications were filed for early hearing of the matters due to the significant amounts involved in Government revenue, including duty and penalty sums of various values. The Tribunal noted that the appellants had previously filed appeals with stay applications, which were granted, waiving pre-deposit of duties and penalties.

Section 35C(2A) mandates that the Tribunal must hear appeals within three years of filing, with the first proviso requiring disposal within 180 days of a stay order being made. The second proviso states that if an appeal is not disposed of within the specified period, the stay order is vacated. In this case, the six-month period from the stay order had expired, yet the Department had not taken steps to recover the duty and penalty. The stay order was granted based on an application from the appellant, but the order did not specify the duration of the stay or the terms of the waiver requested.

As a result, the Tribunal found no justification for early hearing, as the stay order was not in effect beyond six months and the Department had not explained why they did not proceed with execution of the order. Consequently, the applications were dismissed.