2014 (1) TMI 682 - AT - Central Excise

Enforceability of the Writ made to High Court - Goods cleared to another EOU in DTA - Waiver of Pre-deposit - Value of deemed exports to be included as value of exports or not - Held that - It is seen from the order of the Hon ble High Court that the prayer in the writ petition was for staying further proceeding in the present appeal - The interim stay was granted and is still continuing - In view of the interim order of the Hon ble High Court, the stay application is allowed.

Summary

Issues:
Waiver of pre-deposit of duty and penalty along with interest; Inclusion of deemed exports in the value of exports for fulfilling conditions under Notification No. 2/94-CE dated 1.4.1995.

Analysis:
The judgment by the Appellate Tribunal CESTAT Chennai involved the application for waiver of pre-deposit of duty, penalty, and interest amounting to Rs.11,33,862/- and Rs.1.00 lakh respectively. The applicant, a 100% Export Oriented Unit (EOU) engaged in cotton yarn manufacturing, had cleared goods to another EOU in the Domestic Tariff Area (DTA). The key issue was whether the value of deemed exports should be considered in the total value of exports to meet the 50% FOB value condition under Notification No. 2/94-CE dated 1.4.1995. The applicant had appealed to the Directorate General of Foreign Trade (DGFT) authorities challenging the Development Commissioner's order, which was rejected by the DGFT. Subsequently, they filed a Writ Petition before the Madras High Court seeking interim stay on proceedings related to the Show Cause Notice and Order-in-Appeal. The High Court granted interim stay on further proceedings, allowing the matter to be postponed for six weeks.

The Tribunal noted that the interim stay granted by the High Court was still in effect, and considering this, the stay application was allowed. The parties were given liberty to mention the case based on the outcome of the writ petition pending before the High Court. The judgment emphasized the significance of the interim stay granted by the High Court, which halted further proceedings in the appeal, and the Tribunal respected the ongoing legal process by allowing the stay application. The decision highlighted the importance of judicial proceedings and the impact of interim orders on the related matters, ensuring that the legal process was followed diligently and respectfully. The Tribunal's decision to allow the stay application showcased a balanced approach towards the legal proceedings and the rights of the parties involved, maintaining the integrity of the judicial system and upholding the principles of justice and fairness.