2002 (10) TMI 116 - AT - Central Excise

Summary

Issues Involved:
1. Validity of the stay order post-amendment to Section 35C(2A) of the Central Excise Act, 1944.
2. Retrospective application of the amendment.
3. Tribunal's power to extend stay orders beyond 180 days.

Summary:

1. Validity of the Stay Order Post-Amendment:
The Commissioner of Central Excise, Ahmedabad, confirmed a duty of Rs. 17,06,211/- on M/s. Kumar Cotton Mills Pvt. Ltd. and imposed penalties. Appeals were filed, and the Tribunal directed partial pre-deposits. The appellant received a communication stating that any stay order, including partial stays, would stand vacated if the appeal was not disposed of within 180 days as per the amended Section 35C(2A) of the Central Excise Act, 1944. The appellant sought continuation of the stay order despite the amendment.

2. Retrospective Application of the Amendment:
The amendment to Section 35C(2A) was argued to be non-retrospective. Shri Vipin Kumar Jain contended that the amendment, dated 11-5-2002, could not affect stay orders made prior to this date, relying on judgments from the Bombay High Court and the Supreme Court. The Tribunal agreed, stating that the amendment did not express any intent to be retrospective and thus would not affect orders made before 11-5-2002.

3. Tribunal's Power to Extend Stay Orders Beyond 180 Days:
The Tribunal considered whether it could extend stay orders beyond 180 days for orders made after 11-5-2002. It was argued that the Tribunal's power to grant waivers and stays under Section 35F was not limited by the amendment. The Tribunal referenced the Income Tax Appellate Tribunal's approach, which allowed for the extension of stay orders beyond 180 days if necessary. The Tribunal concluded that it retained the power to extend stay orders upon application by the appellant.

Conclusion:
1. Stay orders made before 11-5-2002 remain valid until the disposal of the appeal and are not affected by the 180-day limit.
2. For stay orders made after 11-5-2002, the Tribunal can extend the stay beyond 180 days upon application.
3. The application by M/s. Kumar Cotton Mills Pvt. Ltd. falls under the first category, and the stay order remains effective until the appeal's disposal.