1998 (3) TMI 142 - HC - Central Excise

Summary

Issues:
1. Petition for quashing an order by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi.
2. Petition for a writ of mandamus to direct refund of deposited amount due to delay in decision on product classification issue.

Detailed Analysis:
Issue 1:
The petitioner sought a writ of certiorari to quash the order dated 22-10-1997 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi. The petitioner, engaged in manufacturing Jute Floor Covering, argued that the product should be classified under Chapter sub-heading 5703.20 of the Central Excise Tariff Act, 1985, not under Chapter sub-heading 5703.90. The Commissioner of Central Excise had classified the products under sub-heading 5703.90. The Tribunal, in its order, directed the petitioner to pay the disputed amount by a specified date for an out-of-turn hearing. The court held that since the petitioner agreed to pay the amount, it cannot challenge the Tribunal's order. Thus, the prayer for quashing the order was rejected.

Issue 2:
The petitioner also sought a writ of mandamus to direct the respondents to refund the deposited amount due to the delay in the Tribunal's decision on the classification issue. The court noted that the refund could not be directed until the petitioner succeeded on merits, as the matter was still pending before the Tribunal. The petitioner argued for reclassification of its product under a different sub-heading, but the court held that such classification was a question of fact best decided by the Tribunal. The court emphasized that the petitioner had an alternative remedy through the Tribunal, which it was pursuing. The court directed the Tribunal to decide the appeal expeditiously, preferably within three months of the court's order. Ultimately, the court rejected the writ petition.

In conclusion, the court dismissed the petition for quashing the Tribunal's order due to the petitioner's agreement to pay the disputed amount. The court also rejected the petition for mandamus, emphasizing the need for the Tribunal to decide the appeal promptly and stating that classification issues are best addressed by the Tribunal, not through a writ petition.