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Issues:
Stay of impugned order and confiscated goods, eligibility for benefit of Exemption Notification, suitability of Stamping Foils for use in leather industry, inherent jurisdiction of the Tribunal to grant stay. Analysis: The applicants/appellants filed a Stay Petition and Appeal seeking to stay the impugned order confiscating Stamping Foils valued at Rs. 138,121.00 under Section 111(d) of the Customs Act, 1962. The crucial issue was whether the imported Stamping Foils were fit for use in the leather industry. The Additional Collector held they were not suitable for such use, leading to confiscation. The appellants claimed the benefit of Exemption Notification No. 224/85, but the Collector disagreed. The appellants argued before the Tribunal that they had already paid duty and cited a High Court decision where goods were released on certain conditions. The Tribunal found it had inherent jurisdiction to grant stay and considered the High Court decision favorably, granting stay subject to similar conditions. The Respondent contended that no penalty was imposed, and hence, a stay was unnecessary. They argued that the Tribunal's powers were limited to the statute and the cited High Court decision was not applicable. However, the Tribunal disagreed, asserting its inherent jurisdiction to grant stay. The Tribunal noted that the Customs Act did not prohibit such action and relied on the High Court's decision in a similar case to grant the stay. The Tribunal emphasized the appellants' ability to pay any due amounts and ordered the release of goods subject to specific conditions. In conclusion, the Tribunal granted the stay prayed for by the appellants, allowing the release of the confiscated goods under certain conditions related to the actual consumption of Stamping Foils in the leather industry. The Tribunal highlighted the appellants' financial capability to meet any obligations arising from the case. Additionally, the Tribunal directed the transfer of the appeal to the Special Bench for further proceedings in accordance with the law.
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