CBEC's Draconian Circular - Madras High Court Stays Recovery
ADVOCATES dealing with Central Excise matters are terribly busy in the High Courts, with the New Year Gift given to them by the CBEC in the form of the draconian Circular No. 967/2013 dated 01.01.2013 ( - 02.01.2013). On threatening letters received from the Department, the assessees are rushing to the High Courts (Of course through their lawyers).
Staying the recovery, the Madras High Court on Friday noted that the Petitioner had suffered two ‘orders in original' passed by the Commissioner of Central Excise and have filed appeals against these orders before the CESTAT. During the pendency of these appeals and stay petitions, the department had demanded duty and penalty in terms of the ‘orders in original' based on Board Circular dated 01.01.2013, which provides for recovery of duty after 30 day of filing of appeal if no stay is granted.
Petitioner submitted that the stay petition was listed on various dates but there was no Bench. As there were no regular sitting of the Bench in the Tribunal at Chennai, the petitioner submitted that it is causing great hardship to the petitioner and several other assessees who have filed appeals and stay petitions.
The Court noticed that two members have been appointed to the Tribunal and that they are hearing the appeals and stay petitions. In view of the above, the Court passed an Order requesting the Tribunal to dispose of the Stay petitions filed by the petitioner before February 1, 2013. The Court also directed the department not to take coercive steps till the stay petitions are disposed off by the Tribunal.