2003 (11) TMI 104 - HC - Central Excise

Summary

Issues:
1. Mandamus to CEGAT for appeal decision without pre-deposit
2. Stay on recovery proceedings during appeal

Analysis:
1. The petitioners sought a mandamus directing CEGAT to decide their appeal without requiring a pre-deposit of central excise duty and to halt recovery proceedings during the appeal. The CEGAT had previously ordered the petitioners to make specific deposits towards duty liability, penalties, and waivers within a set timeframe. The High Court noted the delay in challenging this order, indicating that a challenge now would be dismissed due to laches. The relief sought in the writ petition effectively challenged the earlier order, which the court deemed belated.

2. The High Court declined to interfere with the CEGAT's order on its merits as well. The CEGAT's order highlighted the appellant-company's alleged clandestine activities related to raw materials and final product clearance during a specific period. The Commissioner's findings and relevant evidence were cited to support these allegations. The CEGAT also considered arguments regarding the company's financial position. The court emphasized that the grant of stay is discretionary and interference is warranted only if the order is entirely arbitrary. Finding no arbitrariness in the impugned order, the High Court dismissed the petition both on grounds of laches and on merits.