H.S. SONS Vs. CCE, CHANDIGARH

JUDGEMENT

(1.) THESE applications are for waiver of pre -deposit of duty and penalty amounts and for stay of recovery thereof, pending final disposal of the appeals.

(2.) IN order to entertain these applications, the maintainability of the appeals must be settled first. In the case of Wipro Ltd. and Others [2001 (43) RLT 317], the Southern Regional Bench at Bangalore has held that, on account of repeal of Modvat Rules including Rule 57I by Notification No. 11/2000 -CE(NT) dated 1.3.2000 without any saving clause in the new rules viz. CENVAT Rules, 2000, all departmental proceedings for recovery of any credit on inputs under the said Rule 57I lapse and, further, that even appeals before the Tribunal involving such modvat issues shall also lapse. This Bench has taken a view that the correctness of the decision of SRB, Bangalore is not free from doubt and has, therefore, referred the question to a Larger Bench as per order dated 29.3.2001 passed in Appeal No. E/2032/97 -NB(S). Since the very question of maintainability of the present appeals can be settled only after the decision of the Larger Bench becomes available, I am not in a position to entertain the present applications at this stage. However, in the interest of justice, it is felt that the provisions of Rule 41 of the CEGAT (Procedure) Rules, 1982 require to be invoked in the present matters and accordingly, I direct the departmental authorities not to take any coercive action for recovery of the duty and/or penalty amounts from the applicants during the pendency of the present applications. As regards the prayer for waiver of pre -deposit, the same will be considered after the decision of the Larger Bench becomes available. These applications will stand adjourned, for this purpose, to 26.6.2001.