2013 (1) TMI 501 - HC - Central Excise

Petitioner granted writ directing Tribunal to expedite waiver/stay applications. Respondents barred from coercive action.

The court granted the writ of certiorari in favor of the petitioner, directing the Tribunal to expedite the disposal of waiver/stay applications by a ... Stay of recovery pending appeal - waiver of pre-deposit - interim restraint on coercive recovery - expeditious disposal of stay/waiver applications by the TribunalStay of recovery pending appeal - interim restraint on coercive recovery - waiver of pre-deposit - expeditious disposal of stay/waiver applications by the Tribunal - Whether coercive recovery under the impugned order should be restrained until the Tribunal disposes of the petitioner's stay/waiver applications and whether the Tribunal should be directed to decide those applications expeditiously. - HELD THAT: - The petitioner challenged an order of the superintendent demanding payment of duty and penalty in terms of earlier orders-in-original, contending that stay/waiver applications filed before the Customs, Excise and Service Tax Appellate Tribunal were pending because the Tribunal had not been holding regular sittings. The court noted the prejudice claimed by the petitioner and that two Members have now been appointed to the Tribunal and that the Tribunal is hearing appeals and applications for waiver/stay. In the exercise of its supervisory jurisdiction, the court declined to quash the impugned recovery order outright but granted an interim protection by restraining respondents from taking coercive steps until the Tribunal disposes of the petitioner's waiver/stay applications. The Tribunal was requested/directed to decide the petitioner's waiver/stay applications as early as possible and preferably on or before 1.2.2013. The court thus balanced the administrative difficulty of earlier non-sittings against the availability of an effective forum and afforded a time-bound opportunity for adjudication by the Tribunal. [Paras 7, 8, 9]Respondents restrained from taking coercive recovery steps until the Tribunal disposes of the petitioner's waiver/stay applications; the Tribunal directed to dispose of those applications preferably on or before 1.2.2013; writ petition disposed accordingly.Final Conclusion: Writ petition allowed in part: coercive action stayed pending disposal of the petitioner's waiver/stay applications by the Tribunal, which is directed to decide the applications expeditiously (preferably by 1.2.2013); no costs. Issues involved: Petition for writ of certiorari to quash orders, demand of duty and penalty, delay in Tribunal sittings, hardship to petitioners, appointment of Tribunal members, disposal of waiver/stay applications, direction to respondents, closure of miscellaneous petitions.Analysis:The petitioner sought a writ of certiorari to challenge orders in original passed by the Commissioner of Central Excise, demanding payment of duty and penalty based on a circular. The petitioner had filed appeals before the Customs, Excise and Service Tax Appellate Tribunal, which were pending. The superintendent of Central Excise issued an order demanding payment, prompting the petitioner to file the writ petition. The petitioner cited delay in Tribunal sittings due to lack of Members, causing hardship to them and other assessees. The learned counsel argued that the absence of proper sittings prejudiced the petitioner, leading to the filing of the writ petition.The court noted the appointment of two members to the Tribunal who were hearing appeals and applications for waiver of pre-deposit or stay. Consequently, the court directed the Tribunal to dispose of the waiver/stay applications filed by the petitioner expeditiously, preferably by a specified date. The respondents were instructed not to take coercive steps until the Tribunal decided on the applications. The court ordered the writ petition in favor of the petitioner without costs and closed the connected miscellaneous petitions.