Coercive recovery during pending stay proceedings was improper; detention and credit adjustment had to be lifted and restored.

Coercive recovery by departmental authorities was improper where a stay application and appeal were already pending before the Tribunal. Detention of excisable goods and adjustment of available Cenvat credit and PLA balances could not be pursued in disregard of the pending appellate proceedings. The Tribunal applied the settled principle that recovery action should await consideration of stay relief, and directed immediate lifting of the detention with restoration of the credit and PLA balances.

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Issues: Whether the departmental authorities could detain excisable goods and adjust Cenvat credit and PLA balances by coercive recovery measures while the stay application and appeal were pending before the Tribunal.

Analysis: The appellant's stay application was already listed for hearing before the Tribunal, and the authorities were aware of the pending proceedings. The order records that coercive steps were taken despite the pendency of the stay application, including detention of goods and adjustment of available credit balances. The Tribunal treated such action as contrary to the settled position that recovery measures should not be enforced in disregard of a pending stay application before the appellate forum.

Conclusion: The coercive action was held to be improper, and immediate lifting of the detention and restoration of the Cenvat credit and PLA balances was ordered.

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