Appeal Upheld for Clearance of Excisable Goods under Rule 7

The appeal against the order allowing clearance of excisable goods under provisional assessment was disposed of. The court upheld the Single Judge's decision to grant the writ petition, directing the respondents to allow clearance under Rule 7 of the Central Excise Rules. The conflict between the appeal before CESTAT and pending applications for provisional assessment was addressed, with directions given to the Deputy Commissioner to dispose of the applications within four weeks. The CESTAT was instructed to proceed independently with the appeal. The rights of the assessee under Rule 7 were emphasized throughout the judgment.

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Issues:
1. Appeal against order allowing clearance of excisable goods under provisional assessment.
2. Conflict between appeal filed before CESTAT and applications for provisional assessment.
3. Justification of allowing writ petition for clearance under Rule 7 of Central Excise Rules.
4. Directions for Deputy Commissioner to dispose of application for provisional assessment.

Analysis:
1. The appeal was filed against an order allowing the clearance of excisable goods under provisional assessment, as per Rule 7 of the Central Excise Rules, 2002. The Single Judge had granted the writ petition in favor of the petitioners, directing the respondents to allow such clearance and act in accordance with the law.

2. The conflict arose as the Department had filed an appeal before the CESTAT against the order passed by the Commissioner of Central Excise (Appeals), while the respondents had applications for provisional assessment pending. The respondents filed a writ petition seeking clearance of goods on provisional assessment basis under Rule 7, as stay application in the appeal was not informed to them.

3. The Court found that Rule 7 provides the right to the assessee to apply for provisional assessment and payment of duty on a provisional basis. Therefore, the Single Judge's decision to allow the writ petition for clearance under Rule 7 was deemed justified, considering the circumstances and submissions made by both parties.

4. The Deputy Commissioner of Central Excise and Service Tax, Durgapur, was directed to dispose of the pending applications for provisional assessment within four weeks, providing a reasoned order in accordance with the law. The CESTAT was instructed to proceed with the appeal independently, without being influenced by any observations in the current order, aiming for disposal within eight weeks from the date of the order.

In conclusion, the appeal was disposed of, and the application for clearance under provisional assessment was also disposed of, with directions given to the Deputy Commissioner and CESTAT for further proceedings in accordance with the law and the rights of the assessee under Rule 7 of the Central Excise Rules.

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