V.K.KHANNA,J. - (1.) The only grievance, which has been raised by the Petitioner in this Writ Petition, is that the demand of excise duty is being sought to be realised from the Petitioner, despite the fact that an appeal against the aforesaid demand has been preferred before the Collector (Appeals), Central Excise, New Delhi. It has been alleged in the Writ Petition that the Collector (Appeals) on the stay application, which had been filed by the Petitioner, had in fact stayed the demand of the excise duty subject to the Petitioner's furnishing Bank Guarantee for that amount for a period of six months ending on 8.5.1988. According to the Petitioner, the appeal has been heard by the Collector (Appeals), Central Excise, and the arguments have been concluded on 8.3.1988 and the orders have been reserved. However, till now the orders in the appeal have not been given by the Collector (Appeals), Central Excise.
(2.) ON these facts it has been vehemently urged before us that there is no justification for the respondents in realising the amount of excise duty, which is under challenge in appeal before the Collector (Appeals), Central Excise specially in view of the fact that the Petitioner has even extended the Bank guarantee for a period for which the appeal remains pending before the Collector (Appeals), Central Excise. - - At the admission stage we have heard Shri Shekhar Srivastava, Standing Counsel appearing for the Central Government, and the present Writ Petition is being finally disposed of in accordance with the Rules of the Court. After hearing learned Counsel for the parties at some length and looking to the entire facts and circumstances of the case, we are of the opinion that the subject matter of demand of excise duty, which is up for adjudication before the Collector (Appeals), Central Excise shall not be realised from the Petitioner till the Collector (Appeals), Central Excise finally disposes of the appeals filed by the Petitioner, subject to the condition that there is a valid Bank guarantee from a nationalised Bank for the impugned demand in favour of the Excise Department, for the period during which the appeal remains pending before the Collector (Appeals), Central Excise. In case the Bank guarantee furnished by the Petitioner complies with the aforesaid directions, there would be no necessity for filing a fresh Bank guarantee.
(3.) IT is expected that in the appeal, which is pending before the Collector (Appeals), Central Excise, and in which the arguments have been concluded, the Collector (Appeals), Central Excise, will deliver the judgment within a period of one month from the date of filing a certified copy of our order.;