2004 (8) TMI 146 - AT - Central Excise

Summary

Issues:
- Application seeking waiver of pre-deposit and stay of recovery
- Coercive action by the department for payment of disputed duty
- Valid grounds for keeping recovery proceedings in abeyance

Analysis:

The case involved an appeal where the appellants' Counsel mentioned that their application seeking waiver of pre-deposit and stay of recovery for the duty demanded was pending disposal. The department was coercing the appellants for payment, as evidenced by a letter from the Central Excise Range Superintendent demanding the duty amount and threatening coercive action within seven days if not paid. The appellants had previously requested in writing to keep recovery proceedings in abeyance based on valid grounds, citing legal precedents from the Hon'ble High Court of Mumbai and the Hon'ble Rajasthan High Court. The Board had issued circulars supporting the appellants' stance. The Tribunal considered these grounds and decided that an interim order of stay of recovery should be granted until the final disposal of the stay application.

The Tribunal, after examining the grounds presented by the appellants in their letter, acknowledged the legal precedents and circulars cited by the appellants. They found merit in the arguments made regarding the decisions of the Hon'ble High Court of Mumbai and the Hon'ble Rajasthan High Court, which emphasized that no coercive action should be taken during the pendency of stay applications. The Tribunal, therefore, concluded that until the stay application was finally disposed of, an interim order of stay of recovery should be issued. This decision was made to ensure that the appellants were not subjected to coercive measures for payment of the disputed duty while their application was under consideration.