2009 (4) TMI 807 - HC - Central Excise

Summary

Issues:
Interim relief based on utilization of Cenvat credit, application of yardstick in the present case, opportunity of being heard before passing the impugned order.

Interim Relief based on Utilization of Cenvat Credit:
The Court referred to a previous order where it was noted that restraining a manufacturer from using Cenvat credit before completion of investigation could be excessively harsh and not achieve the intended objective. However, in the present case, the Court found that a similar approach could not be adopted due to the specific circumstances.

Application of Yardstick in the Present Case:
The Court rejected the petitioner's argument that the impugned order should be stayed due to lack of proposal and opportunity of being heard. It was observed that the petitioner had been heard by the Chief Commissioner, and the Court was satisfied with the evidence indicating the petitioner's complicity in removing goods without duty payment. This behavior disqualified the petitioner from receiving any equitable relief, including interim orders.

Opportunity of Being Heard Before Passing the Impugned Order:
The Court clarified that the petitioner had been given a chance to present their case before the Chief Commissioner. The Court's decision not to grant interim relief was based on the petitioner's actions, which demonstrated a lack of eligibility for such relief. The Court emphasized that the petitioner's conduct of knowingly removing goods without duty payment precluded any favorable consideration for interim relief.

This judgment highlights the importance of considering the specific circumstances of each case when determining the appropriateness of interim relief and emphasizes the significance of providing an opportunity for the parties to be heard before making a decision.