2002 (8) TMI 501 - AT - Central Excise

Summary

Issues: Stay application for waiver of pre-deposit of duty and penalty, liability of duty on purchaser of goods, pending High Court writ petition.

1. Stay Application for Waiver of Pre-Deposit:
The case involved a stay application for the waiver of pre-deposit of duty amounting to Rs. 52,34,312/- and penalty of Rs. 3,50,000/- along with a stay of recovery proceedings. The Counsel argued that duty was demanded from the Financial Corporation without involving the loanee in the proceedings properly. The Counsel contended that the party, being the purchaser of the goods, should not be liable to pay duty. The Department, however, argued that the loanee was made a party to the proceedings, and hence, the duty was determined against the loanee and demanded from the Financial Corporation. The Tribunal considered the arguments from both sides and referred to relevant case laws to make a decision.

2. Liability of Duty on Purchaser of Goods:
The Counsel cited a decision of the High Court stating that duty liability cannot be imposed on the purchaser of the goods. The Department, on the other hand, argued that the duty was rightfully demanded from the Financial Corporation as they had taken possession of the goods in a Customs Bonded Warehouse and sold them to a third party without de-bonding. The Tribunal examined the arguments presented by both sides and referred to previous legal precedents to reach a conclusion.

3. Pending High Court Writ Petition:
It was brought to the attention of the Tribunal that the Excise Department had filed a writ petition against the Financial Corporation before the High Court, which was pending. The outcome of this writ petition was expected to shed light on the ongoing dispute before the Tribunal. After careful consideration of the facts, circumstances, and relevant case laws, the Tribunal decided to grant the stay as requested, especially due to the pending issue before the High Court in the writ petition filed by the Department against the Financial Corporation. The matter was scheduled for further orders to monitor the developments in the High Court with reference to the writ petition.

In conclusion, the judgment addressed the stay application for the waiver of pre-deposit of duty, the liability of duty on the purchaser of goods, and the impact of the pending High Court writ petition on the ongoing dispute. The Tribunal considered arguments from both sides, referred to relevant legal precedents, and decided to grant the stay application in light of the pending issue before the High Court.