1992 (7) TMI 199 - AT - Central Excise

Order to Department: Halt Debit Entries, Address Stay Application Concerns

The Department was directed to refrain from making further debit entries until the next hearing scheduled for 20th July 1992. The appellant's argument ... Stay order - recovery during pendency of stay - encashment of bank guarantee - power of proper officer to make debit entries - duty to act promptly on receipt of court process or applicationStay order - recovery during pendency of stay - power of proper officer to make debit entries - Whether debit entries were improperly made in the appellants' RG-23A, Part II Register despite a stay application being pending and assurances given. - HELD THAT: - The Bench recorded the appellants' contention that during the pendency of the stay application the Department had physically made debit entries in the RG-23A register, citing authority that recovery or encashment during a stay is not legally justified and that a proper officer lacks power to himself make such debit entries. The Department's representative admitted receipt of the application copy on 7-7-1992 but had not taken any action until the matter was called, which the Bench found unsatisfactory given the urgency. In view of these findings the Bench required the Department to obtain the Collector's comments and directed the Joint CDR to act without further delay, giving one week's time to procure the report. The Bench emphasised that while performing quasi-judicial functions the Department should not convey an impression that grievances remain pending unduly.Application noted; Department censured for delay and directed to obtain Collector's report within one week; matter listed on 20th July 1992.Final Conclusion: The application alleging improper debit entries despite a pending stay was accepted for consideration; the Tribunal directed the Department to obtain and file the Collector's report within one week and listed the matter for further hearing on 20th July 1992. The application complained about the Department making debit entries despite assurance during a hearing. The appellant cited legal precedents where recovery during a stay application was deemed unjustified. The Department was criticized for delay in responding to the application, and one week's time was granted to obtain a report from the Collector. Next hearing scheduled for 20th July 1992.