Today, We have heard an Unpleasant Story: CESTAT
"TODAY, we have heard an unpleasant story"; this is how a CESTAT Order starts. Read on ...
There was a direction by the Bench to the appellant to pre-deposit an amount of differential duty of (Rs.1,30,736/-) plus Rs.50,000/- towards penalty within six weeks. The appellant approached the Assistant Commissioner concerned with a Demand Draft covering these amounts on 6/8/2012. The draft was not accepted. It is further pointed out that, even prior to 6/8/2012, the appellant had informed the Assistant Commissioner in writing to the effect that the Tribunal had granted waiver and stay subject to partial pre-deposit. Meanwhile, a Bank Guarantee for Rs. 5,65,750/- (furnished by the assessee for provisional release of the subject goods) came to be enforced and, thereby, the department recovered the said amount. This recovery took place on 22/8/2012. An explanation given by the Department's AR is that the stay order was received by the respondent-Commissioner only on 30/8/2012.
The Tribunal was hardly impressed with this submission inasmuch as that order was passed after hearing the Authorised Representative of the department also. The department was aware of the stay order passed by this Bench as early as on 12.7.2012. Shortly thereafter, the party submitted a letter to the Assistant Commissioner intimating the stay order.
Prima facie , their entreaties fell on deaf ears. The result is that excessive recovery was made from the appellant, with which the Tribunal is unhappy.
The Tribunal observed, "The miscellaneous application filed by the appellant for refund of the excess amount has to be allowed not only as a relief to the appellant but also as a lesson for the department to be circumspect in similar situations without precipitating unsavoury controversies. We allow this application and direct that the excess amount recovered from the appellant be refunded to them within two weeks from the date of receipt of a certified copy of this order."
Lesson for the department? The Department has absolute contempt for the Supreme Court and it is doubtful whether they would learn any lesson from the Tribunal's Order!