Recovery under a Tribunal order remains payable despite High Court reference proceedings; stay was refused.

Recovery of sums due under a Tribunal order was held not to be suspendable merely because reference proceedings to the High Court were contemplated. The Tribunal noted that the impugned order had been made long earlier, no recovery action had yet been initiated, and Section 35N of the Central Excise Act, 1944 expressly keeps amounts payable under an order under Section 35C(1) due notwithstanding a reference to the High Court or Supreme Court, or an appeal to the Supreme Court. Stay of recovery was therefore refused and the applications were dismissed.

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Issues: Whether stay of recovery of the amount due under the Tribunal's earlier order should be granted pending disposal of the reference proceedings before the High Court.

Analysis: The applicants sought stay on the ground that a reference application had been directed to be made to the High Court. The Tribunal found no justification for grant of stay, noting that the impugned order had been passed long earlier, that no recovery action had yet been taken, and that Section 35N of the Central Excise Act, 1944 expressly provides that sums due to the Government under an order passed under Section 35C(1) remain payable notwithstanding a reference to the High Court or the Supreme Court or an appeal to the Supreme Court.

Conclusion: Stay of recovery was refused and the applications were dismissed.

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