1990 (12) TMI 200 - AT - Central Excise

Summary

Issues Involved:
1. Application u/s 35(E) of the Central Excises and Salt Act, 1944.
2. Request for early hearing and stay of proceedings.
3. Relevance of previous judgments and inherent powers of the Tribunal.

Summary:

1. Application u/s 35(E) of the Central Excises and Salt Act, 1944:
The respondents, M/s. Karna Industries Ltd., filed an application emerging from the Revenue's application u/s 35(E) of the Central Excises and Salt Act, 1944, to be treated as an appeal. The respondents argued that their repair activities for compressors are similar to those previously adjudicated in favor of M/s. Shriram Refrigeration Industries Ltd. by the Tribunal, and that the Supreme Court had not admitted the Revenue's appeal due to a delay.

2. Request for early hearing and stay of proceedings:
The respondents requested an early hearing of the appeal and a stay on the ongoing adjudication proceedings before the Collector of Central Excise (Judicial) and the Assistant Collector. They argued that completing these proceedings would cause unnecessary litigation, inconvenience, and financial burden. The respondents cited several judgments to support their plea for the Tribunal to exercise its inherent powers to grant a stay.

3. Relevance of previous judgments and inherent powers of the Tribunal:
The Tribunal considered the respondents' reliance on earlier judgments, including the Supreme Court's decision in ITO v. Mohd. Kunhi [AIR 1969 S.C. 430], which recognized the inherent powers of appellate authorities to grant interim relief. The Tribunal also referenced similar observations made by the Delhi High Court in ITC Ltd. v. UOI [1983 E.L.T. 1] and the Rajasthan High Court in DCM Ltd. v. UOI [1991 (52) E.L.T. 18 (Raj.)]. The Tribunal agreed that to avoid multiplicity of proceedings and undue hardship, it was appropriate to grant a stay on the pending proceedings.

Order:
The Tribunal ordered that during the pendency of the appeal, the Collector of Central Excise (Judicial) and the jurisdictional Assistant Collector shall not proceed with the adjudication proceedings in respect of the specified show cause notices. The Tribunal also granted an early hearing date for the appeal on 6-3-1991.