Court directs respondents to halt recovery pending CESTAT decision

The Court directed the respondents not to initiate coercive recovery steps until the stay application was decided by CESTAT, Bangalore, in a case concerning recovery proceedings based on an assessment order. The Court emphasized that the decision on the stay application and appeal should be independent of the judgment's observations, disposing of the writ petition without costs and closing any pending miscellaneous petitions.

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Issues involved: Stay of recovery proceedings pending appeal before CESTAT, direction to respondents not to initiate coercive steps for recovery.

The Hon'ble Ms. Justice G. Rohini, in the judgment, addressed the issue of recovery proceedings initiated by the 4th respondent based on a circular dated 01.01.2013 issued by the 2nd respondent, against an order of assessment dated 28.06.2011. The petitioner had filed an appeal before the 5th respondent (CESTAT) along with a stay application, which were still pending. The Court noted that similar writ petitions had been disposed of by directing no coercive steps for recovery until stay petitions were decided by appellate authorities. Considering the pending stay application and appeal before CESTAT, Bangalore, the Court directed the respondents not to initiate any coercive steps for recovery until the stay application was disposed of by CESTAT, Bangalore. The Court clarified that the decision on the stay application and appeal should be independent of the observations made in the judgment. The writ petition was disposed of without costs, and any pending miscellaneous petitions in the matter were closed.

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