Interim stay on excise concession withdrawal protects manufacturing continuity while preserving revenue's right to issue protective notices.

Interim stay was granted against withdrawal of the excise concession for receipt of raw naphtha because the assessee showed that the material was necessary for manufacture of ammonia and that discontinuance would halt production. The Tribunal balanced this against revenue protection and held that the Department could safeguard its interest by issuing protective show cause notices for duty, with adjudication deferred until disposal of the appeal. The relief preserved continued manufacturing during the pendency of the appeal, and early hearing was directed.

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Issues: Whether operation of the impugned order withdrawing the concession for receipt of raw naphtha under the Central Excise Rules should be stayed pending disposal of the appeal.

Analysis: The application was considered in the context of the appellants' claim that raw naphtha was necessary for the manufacture of ammonia and that refusal of supply would halt production. The Tribunal balanced this against the revenue's concern and noted that the Department could protect its interest by issuing show cause notices for duty involved, while adjudication would await the appeal. In these circumstances, the Tribunal found it proper to grant interim protection so that the manufacturing process did not come to a standstill during the pendency of the appeal.

Conclusion: The stay of the impugned order was granted to the extent of the withdrawal of the concession, in favour of the assessee, during the pendency of the appeal.

Final Conclusion: Interim relief was granted, the appeal was listed for early hearing, and revenue was left free to initiate protective proceedings without adjudication till the appeal was decided.

Ratio Decidendi: Where withdrawal of an excise concession would halt essential manufacturing operations pending appeal, interim stay may be granted subject to safeguarding the revenue's interest through protective notice without immediate adjudication.

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