Interim restraint on confiscation and manufacturing interference granted pending disposal of the protection application.

Interim protection against enforcement of a confiscation order can be granted to preserve the status quo where a fresh application is pending and interference with manufacturing activity is in issue. The Tribunal noted that the earlier High Court stay had expired and, to avoid disruption until the pending application was decided, invoked Rule 41 of the CEGAT (Procedure) Rules, 1982 as the basis for interim restraint. It therefore restrained the department from enforcing confiscation of the plant and machinery and from interfering with the appellants' manufacturing operations until final disposal of the application.

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Issues: Whether the department could be restrained from enforcing confiscation of plant and machinery and interfering with the appellants' manufacturing activity pending disposal of the appellants' application.

Analysis: The order records that the earlier High Court stay of confiscation had expired and that a fresh application seeking protection against interference with manufacturing operations was pending before the Tribunal. On the facts brought to its notice, the Tribunal considered it necessary in the interest of justice to preserve the status quo until that application was decided. It invoked Rule 41 of the CEGAT (Procedure) Rules, 1982 as the source of power to grant such interim protection.

Conclusion: The Tribunal granted interim restraint against enforcement of the confiscation order and interference with the appellants' manufacturing activity until the pending application was finally disposed of.

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