High Court orders prompt resolution of stay petition, halts recovery by department pending decision.

The High Court directed the Appellate Authority to promptly decide the stay petition, ordering no recovery by the department until its resolution. The writ petition was disposed of with a directive to decide the stay petition within eight weeks, parties to appear on a specified date, and the respondent department refraining from recovery until finalization. The stay application was disposed of, with each party bearing their own costs.

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Issues:
Challenge to Circular No. 967/01/2013-CX dated 1/1/2013, Statutory authority of Central Board of Excise & Customs to issue circular, Quashing of recovery proceedings, Appropriate writ, order, or direction.

Analysis:
The petitioner challenged Circular No. 967/01/2013-CX dated 1/1/2013, seeking its quashing and setting aside, while also questioning the statutory authority of the Central Board of Excise & Customs to issue such circulars. The petitioner had a pending appeal and stay petition before the Appellate Authority, with no fixed hearing date for the stay petition. The respondent department issued a recovery notice based on the circular, prompting the petitioner's objection. The petitioner cited a previous order by a co-ordinate Bench quashing the same circular and directing the stay of recovery in similar cases until the stay petition is decided.

The respondent did not contest the facts presented by the petitioner but suggested an interim order limited until the stay petition's disposal. The High Court reviewed the submissions and documents and noted the challenge to the original order by the Assessing Officer, the pending appeal and stay petition, and the previous quashing of the circular by a co-ordinate Bench. The Court acknowledged the directive in similar cases to fix a date for the stay petition's hearing and stay recovery until its resolution.

Consequently, the Court found it appropriate to direct the Appellate Authority to promptly decide the stay petition, ordering no recovery by the department until the stay petition's resolution. The writ petition was disposed of with a directive to the Appellate Authority to decide the stay petition within eight weeks, with parties instructed to appear on a specified date. The Court also ruled that the respondent department should refrain from recovering the disputed amount until the stay petition's finalization. The stay application was also disposed of, with each party bearing their own costs.

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