Court rules against Revenue's recovery attempts during stay orders, extends stay, cites Supreme Court precedent. The Bench ruled in favor of the appellants, criticizing the Revenue for attempting to recover the balance amount during the stay order. It was decided ...
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Court rules against Revenue's recovery attempts during stay orders, extends stay, cites Supreme Court precedent.
The Bench ruled in favor of the appellants, criticizing the Revenue for attempting to recover the balance amount during the stay order. It was decided that no recovery should take place until the appeals were disposed of. The stay order was extended, and the Commissioner was directed to ensure officers do not proceed with recovery during such stays. The case referenced a Supreme Court judgment to support the argument against recovery during the pendency of stay orders.
Issues: 1. Recovery of balance amount during the pendency of stay order.
Analysis: The case involved an appeal where the appellants were directed to pre-deposit an amount and report compliance. The Revenue was directed not to proceed with the recovery of the balance disputed amount during the pendency of the stay order. However, the Department issued a recovery notice, prompting the appellants to file a Misc. application seeking an extension of the stay order.
The learned Counsel argued that the Department's action to recover the balance amount during the stay order was legally flawed. He cited a Supreme Court judgment in the case of CCE v. Kumar Cotton Mills Pvt. Ltd. in support of his argument.
After hearing both sides, the Bench noted that the appellants had complied with the pre-deposit requirement as per the stay order. The Bench criticized the Revenue for proceeding with the recovery of the balance amount despite the stay order being in place, stating that such actions were not appreciated. The Bench directed the Commissioner to instruct all officers not to proceed with the recovery when stay orders are in operation. It was ruled that there should be no recovery of the balance amount until the appeals were disposed of. Consequently, the Misc. application was allowed, and the stay order was extended until the final disposal of the appeals. The Registry was instructed to send a copy of the order to the Commissioner for compliance, and the appeals were scheduled for final hearing in due course. The order was pronounced and dictated in open court.
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