Stay extension under Central Excise law continues despite demand notice, with Tribunal reaffirming its power to extend interim protection.

The Tribunal treated its earlier stay-extension orders as continuing in force despite a departmental demand notice issued under Section 35C(2A) of the Central Excise Act, 1944. Relying on the Larger Bench decision and the Supreme Court ruling recognising the Tribunal's power to extend stay, it held that the notice did not displace the subsisting stay order. The stay extension was reiterated and directed to remain operative until final disposal of the appeal.

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Issues: Whether the extension of stay granted earlier would continue in force notwithstanding the demand notice issued by the Department invoking Section 35C(2A) of the Central Excise Act, 1944.

Analysis: The Tribunal noted that its earlier stay-extension orders had been granted in view of the Larger Bench decision and the Supreme Court ruling recognising the Tribunal's authority to extend stay. It held that the demand notice did not affect the subsisting stay-extension order.

Outcome: The stay extension was reiterated and directed to remain in force till final disposal of the appeal.

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