- (1.) Following a notice to show-cause dated 5 February 2007, the Additional Commissioner, Central Excise, NOIDA passed an order of adjudication on 26 April 2010 confirming a demand for central excise duty in the amount of Rs.17,25,261/- together with interest and imposing a penalty of Rs.17 lacs. The appeal was dismissed by the Commissioner (Appeals) on 30 September 2010. The petitioner lodged an appeal before the Customs Excise & Service Tax Appellate Tribunal. The Tribunal by its order dated 15 November 2011 granted a dispensation from the pre-deposit of duty and penalties. The appeal was fixed for final disposal on 7 February 2012. On 7 February 2012, the appeal was adjourned to 25 April 2012. On 25 April 2012 the Bench of the Tribunal was not available and hence, the appeal was adjourned to 17 September 2012 as directed by the President. On 17 September 2012 the Bench of the Tribunal has recorded that since the Bench would not be available in the post lunch session, the appeal should be listed in due course for arguments.
(2.) On 1 May 2014, the third respondent namely the Superintendent, Customs & Central Excise issued a notice to the petitioner, relying upon the amended provisions of sub-section (2A) of Section 35C of the Central Excise Act, 1944, stating that since the appeal had not been disposed of within the period stipulated, the stay which had been granted stood vacated. The petitioners were, therefore, called upon to deposit the outstanding amount failing which recovery proceedings would be initiated in accordance with law.
(3.) Sub-section (2A) of Section 35 C provides as follows:- "(2-A)-The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed: Provided 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 one hundred and eighty days from the date of such order: Provided further 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. Provided also that where such appeal is not disposed off within the period specified in the first proviso, the Appellate Tribunal may, on an application made in this behalf by a party and on being satisfied that the delay in disposing off the appeal is not attributable to such party, extend the period of stay to such period as it thinks fit, not exceeding one hundred and eighty five days, and in case the appeal is not so disposed off within the total period of three hundred and sixty five days from the date of order referred to in the first proviso, the stay order shall, on the expiry of the said period, stand vacated.";