2006 (4) TMI 144 - HC - Central Excise

Summary

Issues:
Prayer for writ of certiorarified Mandamus to prevent coercive action for alleged dues; Enforcement of Bank Guarantees pending appeal; Jurisdiction under Article 226 vs. statutory appeal remedy.

Analysis:
The petitioner sought a writ of certiorarified Mandamus to prevent coercive action for alleged dues by the first and third respondents, including the invocation of Bank Guarantees. The petitioner had filed appeals against original orders, which were rejected by the Commissioner of Central Excise (Appeals). The Assistant Commissioner of Central Excise sought to enforce the Bank Guarantees before the statutory appeal period expired. The petitioner argued that until the appeal period lapsed, no recovery proceedings could be initiated.

The Additional Solicitor General contended that the writ petition was not maintainable as an effective statutory appeal remedy was available to the petitioner. Citing precedent, it was emphasized that Article 226 jurisdiction should not be used to bypass statutory appeal processes. The court agreed, stating that interim relief could be sought through the statutory appeal route. As the petitioner was in the process of filing an appeal, the writ petition was dismissed, emphasizing the availability of the appeal remedy.

The court directed the petitioner to file an appeal before the CESTAT by a specified date and seek any interim relief available under the law. Until then, the respondents were restrained from invoking the Bank Guarantees. This decision aimed to balance the petitioner's right to appeal with the respondents' right to proceed, subject to any interim orders from the CESTAT. The respondents agreed not to invoke the Bank Guarantee for a limited period to allow the petitioner to file the appeal.

In conclusion, the court dismissed the writ petition, emphasizing the importance of following statutory appeal procedures. The directive allowed the petitioner time to file an appeal and seek interim relief through the appropriate legal channels, maintaining a balance between the parties' rights and interests.