2014 (10) TMI 597 - HC - Central Excise

Prayer to quash demand notice - Held that - 1st petitioner had preferred an appeal and an interim order had been passed. The appeal being a special bench appeal, there was a direction to transfer the same to CEGAT, New Delhi. Stay was also granted pending disposal of the appeal. There is no material to indicate that the appeal has been disposed of so far. Ext. P2, an answer to the query under the Right to Information Act, indicates that the Assistant Registrar of the 1st respondent Tribunal has informed that the status of the special appeal could not be traced out and efforts were taken to trace the relevant records and registers and that after the records are traced out, the status of the appeal will be intimated. Ext. P2 communication is dated 8.8.2008. The fact remains that so far the abovementioned appeal has not been decided by any of the authorities. As matters stand now, Ext. P2 is the last communication by which the petitioner was informed that the records are not available. Under such circumstances, it is necessary in the interest of justice that the records are re-constructed and for that purpose, the petitioners as well as respondent authorities shall make necessary arrangement for production of copies of the available records, ie. memorandum of appeal as well as connected records and the 1st respondent has to consider the matter and pass appropriate orders in accordance with law. Until such time, recovery pursuant to Ext. P7 has to be kept in abeyance. - Until disposal of the appeal, recovery of amounts pursuant to Ext. P7 shall be kept in abeyance - Decided partly in favour of assessee.

Summary

Issues involved:
1. Quashing of demand notice and hearing of appeals by respondents.
2. Pending appeal before Tribunal, missing records, and demand notice issued.
3. Disposal of appeal and recovery of arrears.

Analysis:
1. The writ petition sought to quash a demand notice and compel the respondents to hear appeals filed by the petitioner. The petitioner's appeal before the Tribunal was pending, with missing records causing delays. The demand notice was issued for a substantial amount, leading to the petitioner approaching the court for relief.

2. The facts revealed that the appeal filed by the petitioner had not been disposed of, and the records were not traceable. The respondents admitted the total arrears pending and their entitlement to recover the amount due to the appeal not being disposed of within the specified time. The court referred to relevant case law regarding the reconstruction of lost or destroyed records.

3. The court considered the conflicting arguments based on statutory provisions and case law. It was acknowledged that the appeal had not been decided by any authority, and the last communication indicated that the records were not available. In the interest of justice, the court directed both parties to provide necessary records for reconstruction. The court ordered the re-construction of case records and directed the 1st respondent to consider and dispose of the appeal within a specified period, keeping the recovery of amounts in abeyance until the appeal's disposal.

In conclusion, the court ordered the parties to submit all records related to the appeal, directed the reconstruction of case records, and instructed the 1st respondent to dispose of the appeal within a specified period while keeping the recovery of amounts on hold until the appeal's resolution.