2012 (11) TMI 641 - HC - Central Excise

Waiver of pre-deposit - stay CESTAT was directed to dispose of the appeals - petitioner was directed to co-operate with the CESTAT in disposing of the appeals Held that - Petitioner has co-operated with the CESTAT for disposal of the appeals. In fact, even before the receipt of the order of this Court, the petitioner has informed the CESTAT by filing the memos at Annexures- E and F to take up the appeals for final hearing - respondents cannot contend that the petitioner has not co-operated with the CESTAT for disposal of the appeals - petitioner has co-operated with the CESTAT and the CESTAT has already reserved the matter pre-deposit waived

Summary

Issues:
1. Delay in disposal of appeals by CESTAT.
2. Co-operation of the petitioner with CESTAT.
3. Request for a mandamus to prevent seizure of factory belongings.

Analysis:

Issue 1: Delay in disposal of appeals by CESTAT
The High Court directed the CESTAT to dispose of the appeals by a specific date. The petitioner had filed memos requesting final disposal of the appeals, and the appeals were heard and reserved for orders on a particular date. Despite this, the CESTAT did not pass the orders within the stipulated time frame. The Superintendent of Central Excise then requested the petitioner to deposit the disputed amount due to the delay. The petitioner filed a writ petition seeking a mandamus to prevent any seizure until the CESTAT pronounced its order.

Issue 2: Co-operation of the petitioner with CESTAT
The Division Bench of the High Court emphasized the need for the assessee to cooperate with the CESTAT in disposing of the appeals. The petitioner demonstrated cooperation by filing memos for final disposal of the appeals even before the High Court's order. The appeals were heard on merits and reserved for orders, indicating the petitioner's cooperation. The High Court found that the petitioner had indeed cooperated with the CESTAT, as required.

Issue 3: Request for a mandamus to prevent seizure of factory belongings
Considering the circumstances and the petitioner's cooperation with the CESTAT, the High Court directed the respondents not to take steps to recover the disputed amount until the appeals were disposed of. The Court expressed confidence that the CESTAT would resolve the appeals promptly. The petitioner's counsel was instructed to provide a copy of the order to the CESTAT without influencing its decision-making process. The writ petition was disposed of without any costs.

In conclusion, the High Court addressed the delay in appeal disposal, confirmed the petitioner's cooperation with the CESTAT, and granted relief by preventing recovery until the appeals were resolved.