1998 (5) TMI 149 - AT - Central Excise

Summary

Issues: Stay applications regarding Order-in-Appeal passed by Commissioner (A), Bhopal, dated 23-12-1997 involving multiple parties and the interpretation/application of exemption Notification No. 69/86.

Analysis:
1. The stay applications were filed concerning the Order-in-Appeal issued by the Commissioner (A), Bhopal, dated 23-12-1997. The appellants, represented by M/s. National Wire Industries, highlighted that this order pertained to five different parties but revolved around the same core issue.

2. Two parties, M/s. Sapna Wire Industries and M/s. Prestige Wires, had previously obtained an unconditional stay by depositing Rs. 10,000 each. The appellants argued that they had already deposited Rs. 20,000 under protest due to pressure from the department, requesting this amount to be considered sufficient for Section 35F compliance, and the remaining sum to be waived.

3. The Departmental Representative contended that the appellants did not have a strong case on merits regarding the interpretation of exemption Notification No. 69/86, which specified eligibility criteria for the benefit of the notification. The issue centered on the thickness of enamelled wires, with the wires in question being less than 6 mm, contrary to the notification's requirements.

4. The Tribunal acknowledged the similarity between the present case and the situations of M/s. Sapna Wires and M/s. Prestige Wires, where conditional stays were granted earlier. Considering the financial constraints of the appellants, the Tribunal decided to grant stay on similar conditions, waiving the pre-deposit of the remaining amount and halting its recovery during the appeal's pendency.

5. Regarding M/s. Chawla Wire Products, a similar approach was adopted, granting a conditional stay and directing a deposit of Rs. 10,000 within a specified timeframe. Failure to comply would result in the appeal being dismissed without further notice. The Tribunal ensured equity and fair play by treating all appellants uniformly in line with previous decisions.

6. The Tribunal scheduled a compliance report on 20th July 1998 to monitor adherence to the directed deposits and procedural requirements, maintaining oversight during the appeal process to ensure compliance with the stipulated conditions.