1988 (1) TMI 142 - AT - Central Excise

Summary

Issues:
- Grant of stay in respect of a show cause notice dated 22-12-1987.
- Power of the Tribunal to stay the operation of the show cause notice pertaining to the period subsequent to the filing of the appeal.
- Applicability of the judgment of the Hon'ble Delhi High Court in the case of ITC & another v. U.O.I.
- Consideration of undue hardship for granting interim relief.

Analysis:
1. The respondents sought a stay concerning a show cause notice dated 22-12-1987. The advocate for the respondents cited the judgment of the Hon'ble Delhi High Court in the case of ITC & another v. U.O.I. The advocate argued that the Tribunal has the power to grant a stay based on this judgment.

2. The appellant Collector, represented by Shri S. Krishnamurthy, did not object to the grant of stay. He acknowledged the judgment cited by the advocate for the respondents and requested an early hearing.

3. The Tribunal, comprising S/Shri Harish Chander and K.L. Rekhi, analyzed the facts and circumstances of the case. They referred to paragraph 9 of the Hon'ble Delhi High Court judgment in the case of ITC Ltd. & another v. U.O.I., emphasizing the wide amplitude of the power of the Collector (Appeals) and the Tribunal to issue directions regarding future levies. The Tribunal noted that interim relief can be granted in appropriate cases to prevent undue hardship.

4. The Tribunal acknowledged that excise duty can be a recurring liability and recognized the need for guidelines in granting interim relief. They highlighted that relief should only be granted if undue hardship would be caused by paying the duty or penalty. The determination of undue hardship depends on the specific facts of each case.

5. In light of the above analysis, the Tribunal decided to grant a stay on the proceedings as prayed for by the respondents. They based their decision on the provisions of the proviso to Section 35F and the guidelines for granting interim relief to prevent undue hardship, as outlined in the judgment of the Hon'ble Delhi High Court.

This comprehensive analysis of the judgment highlights the considerations made by the Tribunal in granting a stay on the proceedings and the legal principles governing the grant of interim relief in excise duty cases.