2010 (9) TMI 1015 - AT - Central Excise

Summary

Issues:
1. Extension of stay application
2. Detention of finished goods

Extension of Stay Application:
The judgment allowed the application for extension of stay based on the Larger Bench decision in the case of IPCL v. C.C.E., Vadodara, as upheld by the Supreme Court. The stay was extended for a further six months from the date of the judgment or until the disposal of the appeal, whichever is earlier. This decision was crucial in determining the duration of the stay granted to the appellant in relation to the ongoing legal proceedings.

Detention of Finished Goods:
The appellant filed a miscellaneous application seeking directions to lift the detention of finished goods valued at approximately &8377; 31.70 lakhs. The detention was done under a letter dated 9-9-2010 by the Supdt. Central Excise, Range I, Navsari. The advocate argued that despite informing the jurisdictional Central Excise authorities about the application for an extension of stay order, the goods were still detained. The advocate relied on Board's circular No. 925/15/2010-CX, which emphasized that coercive measures should not be adopted if the party has applied for an extension of stay and the matter is pending before the Tribunal. The judgment set aside the detention letter and directed the release of the goods to the appellant, thereby resolving the issue of the detention of finished goods.

In conclusion, both miscellaneous applications were allowed by the tribunal, granting relief to the appellant in terms of the extension of stay and the release of the detained finished goods. The judgment highlighted the importance of following legal procedures and respecting the rights of parties involved in legal proceedings, as evidenced by the decision to release the goods based on the application for extension of stay and relevant legal precedents.