Returnable drums and excise duty: interim protection granted against levy and recovery pending final appeal.

Excise duty on the cost of returnable drums was in dispute because the earlier appellate order had treated the drums as retaining their returnable character and therefore not liable to duty. That order was under challenge before the Appellate Tribunal, but the Court considered it proper that duty should not actually be levied or recovered until the appeal was finally decided. The Assistant Collector was still permitted to issue demands, yet interim protection was granted against enforcement of levy and recovery on the drum cost pending final disposal of the appeal.

---

---

Issues: Whether excise duty on the cost of returnable drums could be levied and recovered pending disposal of the assessee's appeal against the appellate order holding such drums to be of returnable character.

Analysis: The prior appellate order had held that the drums retained their returnable character and that no excise duty was leviable on their cost. That order was under challenge before the Appellate Tribunal. In these circumstances, the Court considered it fair that the departmental authorities should not actually levy and recover duty on the cost of the drums until the appeal was finally decided, though the Assistant Collector could continue to issue demands.

Conclusion: The petitioner was entitled to interim protection against levy and recovery of excise duty on the cost of the drums until the appeal against the appellate order was finally disposed of.

---