GALAXY INDO FAB LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) By means of the present petition, the petitioner is challenging the impugned demand notice dated 11-1-2010, issued by the Assistant Commissioner, Central Excise Division, Rae Bareli.

(2.) The first proviso to Section 35C(2A) of the Central Excise Act, 1944 (hereinafter referred to as "Act") provides that where an order of stay is made in any proceeding relating to an appeal filed under Sub-section (1) of Section 35B the Appellate Tribunal shall dispose of the appeal within a period of 180 days from the date of such order. The second proviso to Section 35C(2A) of the Act provides that if such appeal is not disposed of within the period specified in the first proviso, the stay order, shall on the expiry of that period stand vacated.

(3.) The brief facts giving rise to the present writ petition are that the petitioner was engaged in the processing grey fabrics. The officers of the revenue department visited the premises of the petitioner on 18-11-1998 and seized certain private records, it is alleged that some unaccounted grey fabrics and semi-processed finished fabrics were recovered from the premises. On the basis of material found at the time of search, it has been inferred that the petitioner was indulged in removing manufactured goods without payment of duty and, accordingly, a demand had been raised and penalty had been imposed. Against the order of the Adjudicating Authority, the petitioner filed appeal before the Customs, Excise & Service Tax Appellate Tribunal (hereinafter referred to as "Tribunal") along with an application under Section 35F of the Act for waiver of pre-deposit and stay of the demand till the disposal of the appeal. It was pleaded before the Tribunal that the demand was wholly unjustified. The Tribunal vide order dated 17-8-2005 allowed the application in part and directed the petitioner to deposit a sum of Rupees one crore within a period of eight weeks. Against the order of the Tribunal, the petitioner filed Writ Petition No. 1296 of 2005 which was disposed of on 20-9-2005 [2006 (193) E.L.T. 413 (All.)]. By the aforesaid order of this Court, the order of the Tribunal was modified and the petitioner was directed to deposit a sum of Rupees twenty lacs and the Tribunal was directed to decide the appeal expeditiously. In pursuance of the order of this Court, the petitioner had deposited a sum of Rupees twenty lacs.