2009 (7) TMI 931 - AT - Central Excise

Summary

Issues Involved: Compliance with Stay Order regarding payment of duty and penalty from CENVAT account.

Detailed Analysis:

1. Issue of Compliance with Stay Order: The Applicants had filed an Application for waiver of pre-deposit of duty and penalty along with their Appeals before Commissioner (Appeals). The Commissioner (Appeals) directed the Applicants to deposit a part of the duty amount for the hearing of the Appeal, which the Applicants paid from their CENVAT account. However, the Commissioner (Appeals) held that the Applicants should have paid the amounts in cash as per the Stay Order and dismissed the Appeals for non-compliance with the provisions of Section 35F of the Central Excise Act.

2. Legal Precedents: The issue of whether compliance with the Stay Order can be achieved by paying the amounts from the CENVAT account had been settled previously. The judgment referred to the decision of the Hon'ble Allahabad High Court in the case of India Casting Co. v. CESTAT, where compliance was accepted when the amount was deposited from the CENVAT account. Additionally, the Tribunal's decision in the case of Birla Yamaha v. Collr. also supported this view. The impugned order relied on a different Tribunal decision where the issue was not about the amount of pre-deposit paid from the credit account.

3. Decision and Remand: In light of the precedents set by the Hon'ble Allahabad High Court and the Tribunal, it was concluded that the amount deposited by the Applicants from the CENVAT account did comply with the conditions of the Stay Order. Consequently, the impugned orders were set aside, and the matter was remanded to the Commissioner (Appeals) to decide the Appeals on their merits after providing the Appellants with an opportunity for a hearing. The Appeals were allowed by way of remand, ensuring that the Applicants' compliance with the Stay Order was deemed satisfactory.

This detailed analysis of the judgment highlights the key issues surrounding compliance with the Stay Order and the legal precedents that guided the decision to set aside the impugned orders and remand the matter for further consideration by the Commissioner (Appeals).