Jurisdictional objection to excise notice may be raised at the stay stage, supporting unconditional stay and waiver of pre-deposit.

A jurisdictional objection to a notice under section 11A(1) of the Central Excise Act can be raised at the stay stage because competence of the issuing authority goes to the root of the proceedings. The plea is not confined to an earlier stage and may be taken while the matter is pending. On that basis, the tribunal treated the objection as having merit for interim relief and granted unconditional stay, waiving pre-deposit and recovery during the stay proceedings.

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Issues: Whether the jurisdictional objection to the notice under section 11A(1) of the Central Excise Act, 1944 could be raised at the stay stage and whether the stay application for waiver of pre-deposit and recovery ought to be allowed.

Analysis: The objection related to the competence of the authority issuing the notice and therefore went to the root of the matter. A jurisdictional plea is not confined to an earlier stage and may be raised during the pendency of the proceedings. On that basis, the applicants' contention was found to have merit for purposes of interim relief.

Conclusion: The jurisdictional plea was accepted for the stay proceedings and the request for unconditional stay was allowed.

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