9911796707
|
Home
Issues: Premature enforcement of bank guarantee by Deputy Commissioner, Stay of Deputy Commissioner's proceedings, Jurisdiction of the two-Member Bench, Interim relief under Rule 41 of CESTAT (Procedure) Rules, 1982
In this judgment by the Appellate Tribunal CESTAT, CHENNAI, the matter pertains to an appeal against Order-in-Original No. 4/2005 dated 23-2-2005 of the Commissioner of Central Excise, Pondicherry. The appellant received the impugned order on 12-4-2005 and filed the appeal on 18-5-2005, within the statutory period of 3 months for filing an appeal, which would expire on 12-7-2005. However, the Deputy Commissioner of Central Excise, Division-II, Pondicherry prematurely issued a letter dated 17-6-2005 to the appellant's bankers seeking to enforce a bank guarantee dated 14-8-2002 against the appellants for recovering the dues adjudged under the said order. The Tribunal, noting the premature action of the Deputy Commissioner, granted a stay of the enforcement proceedings for the ends of justice, following the precedent set in ARS Metals Ltd. v. CCE, Chennai - 2004 (174) E.L.T. 74 (Tri.-Chennai). The amount of duty demanded under the Order-in-Original exceeds Rs. two crores, falling within the jurisdiction of a two-Member Bench. However, at the time, there was no such Bench available to handle the matter. Despite this, the Tribunal, in line with the ARS Metals Ltd. case, decided to grant interim relief to the appellants under Rule 41 of the CESTAT (Procedure) Rules, 1982 until the regular Bench could take up the case. The Tribunal, after hearing the learned DR and considering the circumstances, ordered a stay on the Deputy Commissioner's proceedings for enforcing the bank guarantee until further orders. The application for early hearing of the regular stay application was directed to be posted before the Division Bench once it became available. The order was to be executed immediately. Overall, the judgment addresses the issues of premature enforcement of a bank guarantee by the Deputy Commissioner, the grant of stay on the enforcement proceedings, the jurisdictional challenge due to the absence of a two-Member Bench, and the provision of interim relief under Rule 41 of the CESTAT (Procedure) Rules, 1982 to ensure justice is served until the regular Bench can handle the matter effectively.
|
