2001 (3) TMI 593 - AT - Central Excise

Summary

Issues:
1. Stay petition against Order-in-Original calling for payment.
2. Stay petition against decision confirming demand and penalty imposition.
3. Applicability of benefit under Section 22 of Sick Industrial Companies Act.
4. Coordination between assessee, Department, and BIFR.

Analysis:
1. The judgment deals with two stay petitions filed by the assessee against Order-in-Original and decision confirming demand and penalty imposition. The charge against one assessee was selling goods in the domestic area as a 100% EOU, based on evidence like gate pass book and manager's statement, later retracted. The legality of the order will be examined during the appeal determination.

2. The main issue is whether the assessees, who approached BIFR under Sick Industrial Companies Act, can benefit from tax recovery stay under Section 22 of the Act. The judgment refers to the registration of applications by Navpad Textile Inds. Ltd. and Maniyar Plast Ltd. with BIFR, highlighting the importance of this registration for staying tax recovery.

3. The argument presented in favor of the applicants cites a Supreme Court judgment and a Punjab & Haryana High Court case, emphasizing the importance of BIFR registration for tax recovery stay. The judgment quotes the Supreme Court's stance on staying action against company assets once the BIFR reference is registered, leading to a waiver of duty and penalties demanded under the impugned orders.

4. The Tribunal orders the waiver of duty and penalties demanded under the impugned orders due to the filing of applications under the Sick Industrial Companies Act. It directs the assessees and other applicants to coordinate with the Department regarding actions before BIFR, ensuring that Department actions align with legal requirements. The applications are disposed of based on these terms.