Court grants interim stay and injunction against recovery notice pending tribunal appeal

The court granted an interim stay and injunction in response to the challenge against Circular No. 967/01/2013-CX and the subsequent recovery notice. The petitioner's appeal and stay application were pending before the tribunal, yet a recovery notice was issued with a 30-day recovery mandate. The court allowed the petitioner to implead the tribunal as a party respondent and provided interim relief until the matter was further heard, safeguarding the petitioner's rights and preventing immediate recovery actions based on the challenged circular and notice.

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Issues: Challenge to Circular No. 967/01/2013-CX and consequential recovery notice

In this judgment, the petitioner challenged Circular No. 967/01/2013-CX dated 1.1.2013 and the recovery notice issued on 9.1.2013. The petitioner had filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal along with a stay application. However, despite the pending appeal and stay application, a recovery notice was issued, mandating the recovery of the amount within 30 days of filing the appeal. The petitioner argued that the proviso to Section 35-F of the Central Excise Act does not specify any time limit, and therefore, the circular exceeded its provisions.

The court, after hearing arguments from both sides, ordered an interim stay and interim injunction until the matter was further heard on 31.01.2013. The petitioner was also allowed to implead the CESTAT as a party respondent in the case pending before the tribunal. This decision was made to ensure that the petitioner's rights were protected during the ongoing legal proceedings and to prevent any immediate recovery actions based on the challenged circular and recovery notice.

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