1990 (2) TMI 153 - AT - Central Excise

Summary

Issues:
Application for staying further proceedings based on subsequent show cause notice.

Analysis:
The case involved an application under Rule 41 of the CEGAT (Procedure) Rules, 1982 seeking to stay further proceedings based on a show cause notice issued by the Collector of Central Excise. The appellants had earlier appealed against an Adjudication Order demanding duty and penalty, and the pre-deposit requirement was waived. The appellants argued that the subsequent show cause notice was based on the same facts as the earlier notice, citing precedents to support the Tribunal's inherent power to stay proceedings. The respondent contended that the Tribunal's inherent powers are limited to the subject matter of the pending appeal and that the subsequent notice covered a different period with distinct allegations and evidence.

The Tribunal acknowledged its inherent powers but emphasized that such powers should be used judiciously to prevent abuse of the court process or ensure justice. It was noted that the appellants had not yet responded to the subsequent show cause notice, and the issues in both cases were not identical. The Tribunal found that participating in the proceedings based on the subsequent notice would not cause harm or injustice to the appellants. Consequently, the Tribunal decided not to stay the further proceedings initiated on the subsequent show cause notice.

In conclusion, the Tribunal rejected the application for staying the proceedings but allowed the appellants to request an early hearing if there was a delay in finalizing the proceedings based on the subsequent show cause notice.