2015 (11) TMI 1228 - HC - Customs

Waiver of pre deposit - Classification of coal - Bituminous Coal or Steam Coal - Held that - Bangalore Bench of the Tribunal took a particular view and later on Chennai Bench disagreed with it. The referral order of Chennai Bench is also extensively referred in the memo of appeal before us and a copy of the same is annexed at Pages 278 to 294 of the paper book. The issue involved is classification of coal imported by Appellants and whether that is bituminous coal falling under Customs Tariff Notification CTH27011200 as claimed by the Department or steam coal falling under Notification CTH27011920 as claimed by the Appellants - there are rival contentions and equally differing views of the Benches of the Tribunal, then, all the more this was not a case for imposition of any condition of pre-deposit. The waiver application should have been granted without imposing any conditions. If the larger Bench of the Tribunal is to resolve the matter, then all the more, without expressing any opinion on the merits of the controversy, so also on the point whether mere reference to larger Bench should necessarily result in total waiver and unconditional stay, we are of the view that interest of justice will be served if each of these appeals are allowed. The impugned orders of the Tribunal are quashed and set aside - Decided in favour of assessee.

Summary

Issues:
Interim stay and recovery proceedings conditions by Tribunal.

Analysis:
The judgment deals with applications for interim stay and holding recovery proceedings in abeyance by the Customs, Excise and Service Tax Appellate Tribunal's West Zonal Bench. The Appellants challenged the order directing them to pay substantial amounts as a precondition for stay and suspension of recovery proceedings. The Appellants argued that the waiver of the pre-deposit condition was questionable, emphasizing the need for a larger Bench of the Tribunal to resolve complex legal issues. The Tribunal had passed further orders based on a miscellaneous application for rectification of the stay order, considering differing views of Benches on the classification of imported coal. The issue revolved around whether the coal was bituminous coal or steam coal under specific Customs Tariff Notifications.

The Appellants contended that the matter was imminently arguable due to conflicting views of the Benches, warranting an unconditional waiver of the pre-deposit requirement and a stay on recovery pending appeals. The judgment emphasized that since there were rival contentions and differing views within the Tribunal, imposing any pre-deposit condition was unwarranted. The Court quashed and set aside the impugned orders of the Tribunal, granting an unconditional waiver of pre-deposit and a stay on tax recovery. It clarified that no opinion was expressed on the merits of the controversy, leaving all contentions open for further consideration. The revenue was given the option to seek a modification of the order if the Tribunal's Zonal Bench faced delays in hearing and disposing of the appeals promptly.