2015 (8) TMI 1232 - HC - Central Excise

Classification of goods - classification of Flexible Intermediate Bulk Containers under 3993 and 2990 of the Schedule to the Central Excise Tariff Act, 1985 - Held that - As set out by the appellant, because of the classification, he is put into loss and inconvenience especially with the foreign buyers. Under these circumstances, the status-quo is to be maintained till the dispute is resolved by the Tribunal one way or the other. The proper course would be that the Tribunal shall hear the matter expeditiously, within three months from today. But till such time, the order passed by the Commissioner, shall not be given effect to - Stay granted.

Summary

Issues:
Challenge to Tribunal's order denying stay of Commissioner's classification of Flexible Intermediate Bulk Containers under specific entries, appellant's contention for different classification, delay in Tribunal's final decision, maintenance of status quo.

Analysis:

1. Challenge to Tribunal's Order: The appellant challenged the Tribunal's decision refusing to grant a stay on the Commissioner's classification of Flexible Intermediate Bulk Containers under specific entries of the Central Excise Tariff Act, 1985. The Tribunal had initially scheduled a final hearing but did not grant a stay, causing delay in resolving the matter.

2. Appellant's Contention: The appellant argued for a different classification of the containers under specific entries 6305 and 3200, emphasizing the adverse impact of the current classification on their business, especially with foreign buyers. The appellant sought maintenance of the status quo until the dispute was resolved by the Tribunal.

3. Delay in Tribunal's Decision: The High Court noted the delay in the Tribunal's final decision due to a heavy backlog of appeals, leading to the appellant seeking intervention from the Court to expedite the resolution of the classification dispute. The Court directed the Tribunal to hear the appeal expeditiously within three months and stayed the Commissioner's order until a final decision was reached.

4. Court's Order: The High Court partly allowed the appeals, directing the Tribunal to consider the appeal finally as per their previous order. The Court ordered that the Commissioner's classification should not be enforced until the appeal was decided, emphasizing the need for a prompt resolution of the matter to prevent further loss and inconvenience to the appellant, particularly in their dealings with foreign buyers.

In conclusion, the High Court's judgment addressed the issues of classification dispute, delay in Tribunal's decision-making process, and the appellant's request for maintaining the status quo. The Court intervened to expedite the resolution of the dispute, ensuring that the appellant's interests were protected until a final decision was reached by the Tribunal.