CE - Appeals - Should you appeal immediately or wait for 90 days? - Draconian Circular favours late appellant, but …
AS per Sl Nos 6 and 9 of the table to the now notorious CBEC Circular No. 967/2013 dated 1.1.2013:
6 | CESTAT | Appeal filed with a stay application against an Order in Original issued by the Commissioner. | Recovery to be initiated 30 days after the filing of appeal, if no stay is granted or after the disposal of stay petition in accordance with the conditions of stay, if any, whichever is earlier. |
9 | CESTAT | Appeal filed with a stay application against an Order in Appeal confirming the demand for the first time. | Recovery to be initiated 30 days after the filing of appeal, if no stay is granted or after the disposal of stay petition in accordance with the conditions of stay, if any, whichever is earlier. |
Now suppose two assessees get their respective orders on 1.1.2013 and one assessee files an appeal before the CESTAT on 15.1.2013 (within 15 days) and the other one files it on 20.3.2013 (just before the expiry of ninety days) and assume both do not get stay orders from CESTAT. (Here you don't need to assume; the appeal will not be listed in CESTAT for hearing the stay petition by that time).
Now, as per the Circular, recovery proceedings in respect of the first assessee can be initiated on or after 15.2.2013. In the case of the second assessee, recovery action can be initiated only after 20.4.2013.
So, is there an advantage in delayed filing of the appeal? Not really!
DDT understands that yesterday while a High Court granted stay of recovery in a number of cases, it ordered deposit of 50% of the duty in a case where the appeal to CESTAT was filed at the last moment.