2006 (10) TMI 155 - HC - Central Excise

Summary

Issues:
1. Provisional assessment of imported goods
2. Discrepancy in assessed value and declared value
3. Recovery of differential amounts pending appeal
4. Invocation of bank guarantees
5. Jurisdiction of the High Court

Analysis:
1. The petitioners filed bills of entry for clearance of imported goods, declaring the value at USD 350 per MT, but the value was provisionally determined at USD 485 per MT based on import prices. Orders-in-original enhanced the value to USD 485 per MT as final assessable value.

2. The petitioners appealed against the orders, citing a previous case where a similar view was accepted by the Tribunal. They argued that recovery of differential amounts during the appeal process was unjustified as they had a strong case in their favor.

3. The High Court noted that the appeals were pending along with stay applications to halt the recovery process. The court found it impermissible to invoke bank guarantees without passing orders on the appeals or stay applications.

4. Instead of prolonging the case, the High Court directed the Commissioner of Central Excise (Appeals) to promptly decide on the stay applications or main appeals. Until a decision is made, the bank guarantees were not to be invoked, but the petitioners were instructed to maintain them.

5. The High Court disposed of the writ petitions, emphasizing the need for timely resolution by the Commissioner of Central Excise (Appeals) and ensuring the bank guarantees remain active until a final decision is reached. No costs were awarded, and the related miscellaneous petitions were dismissed.