2004 (12) TMI 103 - HC - Central Excise

Summary

Issues Involved:
Rejection of declaration under Kar Vivad Samadhan Scheme due to pending appeal recall application - Validity of rejection based on appeal status - Interpretation of pending appeal status for scheme eligibility.

Analysis:

The judgment revolves around the rejection of a declaration under the Kar Vivad Samadhan Scheme due to the absence of a pending dispute before the CEGAT, Chennai at the time of declaration. The respondent's declaration mentioned an appeal pending before the Tribunal that had been dismissed by an ex parte order, with an application for recalling that order pending. The competent authority rejected the declaration despite the subsequent recall of the ex parte order and restoration of the appeal. The learned single Judge found the rejection erroneous, stating that with the appeal restored, it would be deemed pending on the declaration date, aligning with precedents from the Punjab and Haryana High Court and the Madhya Pradesh High Court.

The High Court concurred with the single Judge's view, citing precedents that when a Tribunal recalls an order and restores an appeal, it is deemed pending on the declaration date. The rejection of the declaration based on the appeal status was deemed invalid. The Court emphasized that once the appeal was restored to its original number, it should be considered pending for the purpose of the Kar Vivad Samadhan Scheme. Consequently, the writ appeal challenging the rejection of the declaration failed, leading to its dismissal without any costs being imposed.