2008 (12) TMI 421 - AT - Central Excise

Detention of finished goods - Waiver of the pre-deposit - If the stay application is filed by the assessee against the Order-in-Original confirming the duty demand, no coercive action should be taken to realize the dues till the disposal of the stay application by the Commissioner of Central Excise (Appeal) or the Appellate Tribunal as the case may be - the action of the authority in detaining the goods and forcing the appellant to reverse the Cenvat credit/PLA balance shows the revenue zeal of the officers, completely disregarding the fact that the stay application/appeal of the appellant are pending before the Tribunal - Decided in favor of the assessee

Summary

The appellate tribunal CESTAT, Bangalore, consisting of T.K. Jayaraman and M.V. Ravindran, JJ., heard a Miscellaneous Application filed by the appellant to lift a detention order. The appellant's Stay Petitions were scheduled for a hearing, but the department had already initiated coercive measures to recover dues. The Superintendent of Central Excise detained goods and reversed the Cenvat credit balance despite the appellant's waiver application. The departmental representative justified these actions based on the Central Excise Manual. The Hon'ble Rajasthan High Court's decision in Shree Cement Ltd. v. UOI was cited, stating that coercive actions during pending stay applications are not permissible. The tribunal found the authority's actions unreasonable and ordered the immediate lifting of the detention and restoration of credit balances. The decision was pronounced in open court.

This summary provides a comprehensive overview of the key issues addressed in the judgment, including the appellant's detention, coercive measures, relevant legal references, and the tribunal's final ruling. The details are presented in a clear and concise manner, capturing the essence of the judgment.