TaxTMI 
TaxTMI 
1991 (5) TMI 158
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....llants. He pleaded that in the matter before the Tribunal there is no demand of duty and no penalty has been imposed. The Collector in the impugned order has seized the goods lying in the premises of M/s. ION Exchange (I) Ltd. provisionally and had released the same on execution of B-II bond and security of Rs. 2 lakhs. He argued that the Collector had given an option to redeem the goods which had already been released on payment of Rs. 2 lakhs as fine in lieu of confiscation. He pleaded that the sum of Rs. 2 lakhs which were in the form of bank guarantee has also been appropriated and the balance amount of Rs. 22 lakhs the applicants has been desired by the Collector vide his letter dated 5-2-1991 to deposit Rs. 22 lakhs by a crossed chequ....
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....y released on the basis of execution of B-11 Bond by them and security of Rs. 2 lakhs provided by them and these goods have not been produced by them. I, therefore, order their confiscation under Rule 173Q ibid. I however give them an option to pay redemption fine of Rs. 24 lakhs in lieu of confiscation. Since the goods have been released provisionally the security of Rs. 2 lakhs executed for release is appropriated against payment of redemption fine. The balance amount of Rs. 22 lakhs is to be recovered for exercising redemption fine. In addition Central Excise duty at the appropriate rate is to be paid on these goods." A simple perusal of the same shows that the Collector had released the goods provisionally and he has imposed a fine in ....
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....licants is the purchaser of the goods from Fellowship of Physically handicapped, Bombay. The goods have already been released provisionally. The judgment in the case of M/s. Satyapal v. CCE reported in 1987 (27) E.L.T. 107 does not help the respondent as the facts are different. While releasing the goods on execution of B-11 bond, the Revenue authorities should have taken the necessary precaution to safeguard the interest of the Revenue. Since the Revenue authorities has desired the applicants to deposit Rs. 22 lakhs after releasing Rs. 22 lakhs on account of bank guarantee we feel that it is a fit case where the Tribunal should exercise its inherent power in terms of Supreme Court judgment in the case of Income Tax Officer, Cannanore v. M.....
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.... assessee but that can hardly be put at par with a statutory power as is contained in Section 220(6) which is confined only to the stage of pendency of an appeal before the Appellate Assistant Commissioner. The argument advanced on behalf of the appellant before us that in the absence of any express provisions in Sections 254 and 255 of the Act relating to stay of recovery during the pendency of an appeal it must be held that no such power can be exercised by the Tribunal, suffers from a fundamental infirmity inasmuch as it assumes and proceeds on the premise that the statute confers such a power on the Income-tax lief to an assessee. The right of appeal is a substantive right and the questions of fact and law are at large and are open to r....
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....cation all powers and duties incidental and necessary to make the exercise of those powers fully effective. In Domat's Civil Law, Cushing's Edition, Vol. 1 at page 88, it has been stated : "It is the duty of the Judges to apply the laws, not only to what appears to be regulated by their express dispositions but to all the cases where a just application of them may be made, and which appear to be comprehended either within the consequences that may be gathered from it." Maxwell on Interpretation of Statutes, Eleventh Edition contains a statement at p. 350 that "where an Act confers a jurisdiction, it impliedly also grants the power of doing all such acts, or employing such means, as are essentially necessary to its execution. Cui jurisdicti....
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....ry of taxes or penalties payable by or imposed on the assessees as a matter of course the revenue will be put to great loss because of the inordinate delay in the disposal of appeals by the Appellate Tribunals. It is needless to point out that the power of stay by the Tribunal is not likely to be exercised in a routine way or as a matter of course in view of the special nature of taxation and revenue laws. It will only be when a strong prima facie case is made out that the Tribunal will consider whether to stay the recovery proceedings and on what conditions and the stay will be granted in most deserving and appropriate cases where the Tribunal is satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory by all....