MANU/EXCR/0024/2016

Ministry : Ministry of Finance

Department/Board : CBEC Excise

Circular No. : 1035/23/2016-CX

Date : 04.07.2016

Notification/ Circulars Referred : Circular No. 967/1/2013-CX dated 01.01.2013 MANU/EXCR/0002/2013;Circular No. 984/08/2014-CX dated 16.09.2014 MANU/EXCR/0008/2014

Citing Reference:
Circular No. 967/1/2013-CX dated 01.01.2013 MANU/EXCR/0002/2013  Referred

Circular No. 984/08/2014-CX dated 16.09.2014 MANU/EXCR/0008/2014  Referred

To,

The Principal Chief Commissioners/ Chief Commissioners of Central Excise (All)
The Principal Chief Commissioners/ Chief Commissioners of Central Excise and Service Tax (All)
The Principal Chief Commissioners/ Chief Commissioners of Service Tax (All)
The Principal Chief Commissioners/ Chief Commissioners of Customs (All)
The Directors General (All)

Recovery of confirmed demands during the pendency of stay application-reg

Madam/ Sir,

Kind attention is invited to Board Circular No. 967/1/2013-CX dated 01.01.2013 on the issue of recovery of confirmed demands during the pendency of stay application filed by the assessee. Since then important changes in law have been made and important judgments have come on the subject. Accordingly, it has been decided to review the Circular.

Part I: When stay application is pending before Commissioner (Appeals) or CESTAT:

2.0 The circular dated 01.01.2013 was examined by Hon'ble High Courts in situations where stay applications was pending before Commissioner (Appeals) or CESTAT. In this regard some of the important judgments are L&T vs. UOI [2013-TIOL-99-HC-CX]  and Karnavati Club ltd. Vs UOI (SCA No. 2422/2013), wherein the Courts held that recovery could be made only in cases where delay in deciding the stay could be attributed to the conduct of the assessee. No appeal was filed against these judgments of the llon'ble High Courts by the Department and thus these judgments attained finality.