Revenue interpreting Stay order to mean that there is no stay, so Tribunal clarifies
IN this interesting case, the appellant has filed an application for modification of the Stay order passed by the Bench.
The Stay order - The Tribunal vide stay order dated 06/11/2012 directed the applicant to deposit an amount of Rs.10 lakhs in addition to the amount already deposited and waived the pre-deposit of the balance amount of duty, interest and penalty.
And the reason for filing the Modification application - the Revenue is interpreting the Stay order to mean that "there is no stay against recovery of the amount in dispute". This, it has communicated to the assessee through its letter dated 17/01/2013.
Weird, isn't it?
Probably, it is the Board Circular 967 which is playing truant!
Be that as it may, when the matter came up before the CESTAT, the Bench observed -
"…The Revenue is interpreting the order in a way that there is no stay against recovery of the amount in dispute which is evident from the letter dated 17.01.2013. In these circumstances, we make it clear that on deposit of the amount mentioned in the stay order, the pre-deposit of the remaining dues is waived and recovery of the same is stayed during the pendency of the appeal. The miscellaneous application is disposed of as indicated above."
One more reason as to why the appeal pendency keeps on increasing in the CESTAT on account of frivolous demand letters by the Revenue.