2013 (3) TMI 793 - HC - Customs

Summary

Issues:
The judgment involves issues related to the disposal of appeals by the Customs, Excise and Service Tax Appellate Tribunal within the statutory period, the obligation to decide appeals within a specified timeframe, and the extension of interim protection granted to petitioners.

Disposal of Appeals by Tribunal:
The petitioners filed writ petitions due to their appeals not being heard by the Tribunal within the statutory period of 180 days as required under Section 129B(2A) of the Customs Act. The Tribunal had issued notices for hearing on applications seeking extension of time. The delay in disposal of appeals could not be attributed to the petitioners, and they relied on a relevant judgment to support their case. The Tribunal's inability to decide the appeals within the stipulated time should not result in the automatic vacation of the stay granted. The petitioners' bank guarantee had not been encashed, and the Court directed the department not to proceed with invoking the bank guarantee until the Tribunal decides on the application for extension of interim protection.

Legal Obligations and Observations:
The Tribunal is obligated to decide appeals within specified timeframes under the Customs Act. The petitioners argued that they should not be deprived of their legitimate rights due to delays in Tribunal proceedings. Reference was made to a judgment emphasizing that assessees should not be punished for matters beyond their control. The Court directed the Tribunal to decide the application for extension of interim protection and the main appeal expeditiously in accordance with the law. The judgment emphasized that the observations made by the Court should not influence the Tribunal's decision on the pending application for extension of interim protection.

Conclusion:
The writ petitions were disposed of with a direction to the respondents not to proceed with the demand/recovery notice until the Tribunal decides on the application for extension of interim protection. The Tribunal was expected to expedite the decision on the application and the main appeal in accordance with the law to ensure the petitioners' rights are protected.