Draconian Circular 967 Department refrained from initiating recovery proceedings
IT seems the lull is over. In the first week of April, 2013, the Karnataka High Court, in three cases,refrained the department from initiating recovery proceedings until such time the appellate authority passed an order on the interlocutory applications filed by the petitioners in the matter of the pending appeal.
The Bombay High Court decision in Larsen and Toubro Vs. Union of India and Others () was referred by the Karnataka High Court.
Incidentally, in one of the cases, the department had attached and recovered nearly thirty lakh rupees from the petitioner's Bank account while the stay application was pending. The petitioner was willing to part with half of that amount as a pre-condition for their appeal being heard by the CESTAT before whom their Stay application and appeal was pending. The High Court agreed and directed the CESTAT to consider the petitioner's Stay application forthwith and the department was directed to refund the balance 50% within a week.