2004 (7) TMI 418 - AT - Central Excise

Tribunal Denies Stay in Excise Case: No Registration Needed for Limestone Loading

The Tribunal denied the application for a stay of the operation of Order-in-Appeal No. 22/2004(T)-C.E., ruling that registration is not required for ... Stay of operation of Commissioner (Appeals) order Issues:1. Stay of operation of Order-in-Appeal No. 22/2004(T)-C.E.2. Eligibility for Modvat credit on inputs and materials used in the mines pending appeal.Analysis:1. The applicants sought a stay of the operation of Order-in-Appeal No. 22/2004(T)-C.E., which held that no registration is required for exempted products under Central Excise law. The Commissioner stated that registration is only necessary for premises where manufacturing activity occurs, and mere excavation and loading of limestone does not constitute manufacturing under the C.E. Act. The mining area cannot be considered part of the factory manufacturing cement. The learned Counsel argued that denying the stay would prevent them from availing Modvat credit on inputs and materials used in the mines pending appeal.2. The prayer for a stay was contested by the learned SDR, asserting that the order was legally sound and passed after due consideration and application of the law. The SDR argued that there was no prima facie case to grant a stay under Rule 41 of the CEGAT (Procedure) Rules, 1982. After careful consideration, the Tribunal, comprising Dr. S.L. Peeran and Shri K.C. Mamgain, agreed with the SDR. They found the order proper and legally sound, with no significant defects necessitating a stay. The Tribunal emphasized that the mining area, being exempted from the Excise Act, cannot be included in the factory's Ground Plan. Consequently, the application for a stay was deemed meritless and rejected.