CESTAT (PROCEDURE) RULES - Amended - 'Stay' Still in Vogue?

By Vijay Kumar

THERE is a general opinion that for cases decided after 6.8.2014, Stay applications need not/cannot be filed before CESTAT as there is no waiver of pre-deposit and a mandatory pre-deposit has to be made.

But obviously there are still issues which may require a Stay like suspension of a Customs Brokers Licence.

The CESTAT President has amended the CESTAT (Procedure) Rules, 1982.

Rule 28A(1)(a) of the Rules before the amendment read as:

Every application preferred under the provisions of the Acts for stay of the requirement of making deposit of any duty demanded or penalty levied shall be presented in triplicate by the appellant in person or by his duly authorised agent, or sent by registered post to the Register or any other office authorised to receive memoranda of appeals, as the case may be, at the Headquarters of the Bench having jurisdiction to hear the appeal in respect of which the application for stay arises:

Now this is amended to read as:

Every application preferred under the provisions of the Acts for stay of the operation of impugned orders dealing with refund, under CHA Licensing Regulation, Warehousing, etc shall be presented in triplicate by the appellant in person or by his duly authorized agent, or sent by registered post to the Registrar or any other officer authorized to receive memoranda of appeals as the case may, at the Headquarters of the Bench having jurisdiction to hear the appeal in respect of which the application for stay arises.

Now there is no CHA Licensing Regulation - it is called the Customs Brokers Licensing regulations.

The need for Stay application in refund cases: Refunds are usually rejected or sanctioned by an Assistant Commissioner. If the Commissioner (A) sets aside the refund order of an Assistant Commissioner, is it necessary to file a Stay Petition before the CESTAT. Maybe without the Stay, department may proceed to recover the ‘erroneous' refund if already paid to the assessee.

CESTAT NOTIFICATION NO. 01 OF 2014, Dated: November 7, 2014