Recovery during pendency of Stay Application - Yet another HC stays recovery
IF you are a Central Excise/Service Tax assessee, it is almost sure that there would be an appeal filed by you along with a stay petition pending before the Commissioner (Appeals) or the CESTAT and chances are that after 1st January 2013, you must have got a letter/notice entreating you to pay up and threatening you with coercive action if you don't.
In the olden days, the kings used to have a bell, which an aggrieved citizen could go and ring and the benign king would redress the grievance. Our modern democratic kings are despotic, especially towards taxpayers who do not constitute a significant vote bank and they don't have any bell for the aggrieved Citizen, who most often is the victim of their despicable arrogance.
However, the Constitution has retained the Bell - not with the King but with the High Courts - in the form of writ petition.
When there is a provision in the Law for appeals against the atrocious orders passed by the taxmen and any decent administration would wait till the stay application is disposed of to initiate their recovery proceedings, it is sad to see the CBEC issuing the draconian circular on 1st January 2013.
The unfortunate assessee has no option but to use the BELL in the High Court. Hundreds of assessees are ringing those bells in various High Courts and the High Courts are justly granting stay of recovery.
Unfortunately, the loud clanking sound of the Bell is not heard in the North Block. The one monstrous piece of paper that could generate Himalayan Litigation and humungous expenditure without a rupee coming to the treasury is the draconian Circular No. 967 of 1st January 2013. Can't the Board withdraw this Frankenstein before further damage?
Today we bring you an order from the Karnataka High Court staying recovery.