1989 (9) TMI 233 - AT - Central Excise

Summary

Issues: Stay application for withdrawal of concession under Central Excise Rule 192 for Raw Naphtha usage and forfeiture of security deposit.

In the present case, the appellants filed a stay application seeking to stay the operation of an order directing the withdrawal of a concession granted under Central Excise Rule 192 for the use of Raw Naphtha in extracting unconverted carbon from soot-water, along with the forfeiture of a security deposit. The appellants also requested an expedited hearing of the appeal. The Tribunal, after hearing arguments from both parties, considered the importance of Raw Naphtha in the manufacturing process of ammonia at the appellant's company. The appellants argued that without Raw Naphtha, the production of ammonia would cease, emphasizing its crucial role in the manufacturing cycle. The Tribunal referenced previous decisions to analyze the relevance of Raw Naphtha usage in the manufacturing process. Despite the differing interpretations in past cases, the Tribunal decided to grant a stay on the withdrawal of the concession to prevent the production of ammonia from halting during the appeal process. The Tribunal scheduled a peremptory hearing for the appeal to ensure a swift resolution due to the significant revenue involved. The appellants were instructed to ensure their representation on the designated hearing date, with no adjournments permitted. The Registry was directed to prioritize the appeal for the scheduled hearing date. Additionally, the Department was given the liberty to issue show cause notices for the duty amount related to Raw Naphtha received under the stay order to safeguard revenue, with the condition that adjudication of these notices would be on hold until the appeal's disposal. Finally, both parties were provided with a copy of the order for their records and compliance.