1998 (9) TMI 354 - AT - Central Excise

Summary

Issues:
Implementation of Tribunal's Order and Contempt Notice for hindering the Order's execution.

Implementation of Tribunal's Order:
The case involved the disallowance of Modvat credit for HDPE bags used as packing material for Cement by the Commissioner of Central Excise. The Tribunal's Final Order dated 4-11-1997 allowed the Modvat credit, considering the bags as eligible input under Rule 57A. The Tribunal also deemed the credit taken within a reasonable period. The applicants sought to implement this Order, but the Assistant Commissioner raised objections, emphasizing the bags' classification under Chapter 63. The Tribunal held that the Department must adhere to its Order and grant the Modvat credit as directed, rejecting the Department's delay tactics and misinterpretation of the Order.

Contempt Notice for Hindering Order's Execution:
The applicants filed a Contempt Petition against the Department for obstructing the execution of the Tribunal's Order. The applicants argued that the Department's refusal to grant the Modvat credit based on new grounds post the Tribunal's Order was contemptuous. The Tribunal, after considering both parties' submissions, found insufficient reasons to issue a Contempt Notice. The Contempt Petition was thus rejected.

The judgment emphasized the importance of following higher appellate authorities' Orders, highlighting the principle of judicial discipline. It clarified that once the Tribunal sets aside an impugned Order and allows an appeal, the Department must implement the decision promptly. The Tribunal directed the Department to grant the Modvat credit to the applicants within three months of the Order's receipt, emphasizing the need for compliance. The judgment upheld the Tribunal's Order, ensuring the applicants receive the benefits entitled to them as per the legal provisions and precedents cited during the proceedings.