Coercive recovery barred during pending stay applications, with expeditious appeal disposal and compliance with binding circular directions.

Coercive recovery should not be pursued while a stay application remains pending for reasons beyond the assessee's control, where a binding circular as interpreted by the Court restrains such action. The authorities were found unjustified in leaving the stay application undisposed of and proceeding with recovery. However, because the amount had already been withdrawn, no direction was made for restitution. The matter instead called for expeditious disposal of the appeal and circulation of the earlier judgment to ensure compliance with the binding limitation on recovery.

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Issues: Whether recovery could be effected while the assessee's stay application remained pending, and what consequential directions should follow regarding disposal of the appeal and observance of the binding circular.

Analysis: The circular of the Central Board of Central Excise and Customs had already been interpreted to mean that recovery proceedings should not be initiated thirty days after filing of an appeal where a stay application is pending for reasons beyond the assessee's control. That interpretation binds authorities within the Court's jurisdiction. On the facts, there was no justification for leaving the stay application pending and resorting to coercive recovery. At the same time, since the amount had already been withdrawn, no direction was issued to restore it. Instead, directions were issued for expeditious disposal of the appeal and for the controlling authority to circulate and ensure compliance with the earlier judgment.

Conclusion: Coercive recovery during the pendency of the stay application was disapproved, but no order was made for return of the amount. The appeal was directed to be decided expeditiously, and compliance with the binding circular was mandated.

Final Conclusion: The petition was disposed of with partial relief to the assessee by curbing the basis for coercive recovery and securing prompt appellate adjudication.

Ratio Decidendi: Recovery should not be pursued while a stay application remains pending for reasons beyond the assessee's control, and the departmental authorities bound by the Court's interpretation must comply with that limitation.

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