2019 (8) TMI 207 - HC - Central Excise

Grant of permission under Erstwhile Rule 56(B) of the Central Excise Rules, 1944 to remove the IV sets as semi finished or finished goods for testing purposes - HELD THAT - We have thought fit to incorporate paragraph 5 of the order passed by the Tribunal referred to above, keeping in mind that even the Tribunal, at the relevant point of time, was convinced that the goods were exported. The Tribunal being convinced of such fact, ultimately, passed an order for the waiver of the pre-deposit amounts involved - We will be examining the substantial questions of law which have been formulated while admitting the tax appeal. A strong prima facie case has been made out for grant of the interim relief as prayed for in the present civil application. The tax appeal shall be notified for final hearing on 17th September, 2019.

Summary

Issues:
1. Stay of execution and implementation of final order by Tribunal
2. Stay of recovery of duty, interest, and penalty during pendency of Tax Appeal
3. Admissibility of Form-H as proof of export
4. Confirmation of demand of duty for goods removed under Rule 568
5. Justification of demanding excise duty based on H-Forms as proof of export
6. Limitation period for show cause notice issuance
7. Validity of penalty imposition

Analysis:
1. The applicant sought a stay on the execution and implementation of the final order passed by the Tribunal and also requested a stay on the recovery of duty, interest, and penalty during the pendency of the Tax Appeal. The Tribunal had admitted the Tax Appeal based on substantial questions of law regarding the correctness and sustainability of various aspects of the Tribunal's order.

2. The Tribunal observed that the appellant had been granted permission to remove goods for testing purposes and subsequent export, which was known to the department. The Tribunal acknowledged the undisputed export of goods and granted a waiver of pre-deposit amounts involved, staying the recovery of the same until the appeal's disposal. This decision was based on the prima facie case made by the appellant.

3. The Court noted the Tribunal's conviction regarding the export of goods, leading to the waiver of pre-deposit amounts. The Court found a strong prima facie case for granting the interim relief sought in the civil application. Consequently, relief was granted pending the final disposal of the tax appeal, with the appeal scheduled for a final hearing on a specified date.

4. In conclusion, the Court made the rule absolute and permitted direct service. The judgment highlighted the importance of the Tribunal's conviction regarding the export of goods in granting relief and staying the recovery of amounts involved. The detailed analysis covered the issues raised by the applicant and the Tribunal's observations, ensuring a comprehensive understanding of the judgment's implications and decisions.