2007 (6) TMI 508 - HC - Central Excise

Summary

Issues:
Interim relief against recovery of interest and penalty under excise duty laws.

Analysis:
The judgment was delivered by M.S. Shah and K.A. Puj, JJ. The petitioner sought a stay against the recovery of interest and penalty related to excise duty. The petitioner had already paid the excise duty levied as per departmental orders. The court heard arguments from both sides, with the petitioner's advocate stating that the interest and penalty should be stayed. The Assistant Solicitor General representing the respondents opposed any interim relief and argued that the petitioner should deposit the entire penalty amount. The court, considering previous orders, did not grant a stay against the operation of the Central Excise Act or a judgment by the Larger Bench of the Tribunal. However, based on the petitioner's assurance to pay excise duty without availing quantity discount and to settle the interest by a specified date, the court granted an interim stay against the penalty recovery. This decision was influenced by the petitioner's reliance on a previous tribunal decision, which was later overturned by the Larger Bench.

The court clarified that the interim stay was granted without prejudice to the rights and contentions of both parties. The respondents' argument that the facts of the case differed from the precedent cited by the petitioner was acknowledged, with the court reserving the final opinion on this contention for the final hearing. The court also issued a notice to the Attorney General of India for the next hearing. The judgment highlighted the importance of adherence to excise duty regulations and the significance of legal precedents in determining the outcome of such cases.