2013 (11) TMI 484 - HC - Central Excise

High Court Stays Payment Demand, Criticizes Tribunal Delay

The High Court stayed the demand for payment criticizing the Tribunal for delaying the petitioner's waiver application. - 2013 (295) E.L.T. 498 (A.P.) Waiver of pre-deposit - priority in hearing applications for pre-deposit waiver - stay of operation of demand pending adjudication of pre-deposit application - prohibition against coercive recovery while pre-deposit application is pendingWaiver of pre-deposit - priority in hearing applications for pre-deposit waiver - Tribunal ought to give priority to hearing applications for waiver of pre-deposit and avoid listing such applications at distant dates. - HELD THAT: - The Court recorded surprise at the low priority accorded by the Tribunal to applications for waiver of pre-deposit and criticised the practice of fixing long dates which imposes inconvenience on litigants and burdens the Courts with avoidable petitions. The Tribunal's practice of not taking up such applications promptly was held to be undesirable, and the Court expressed that applications for waiver of deposit should be given priority so as to prevent avoidable hardship to the petitioner and to reduce ancillary litigation. [Paras 1, 4]Tribunal should give priority to hearing applications for waiver of pre-deposit and avoid granting unduly long dates.Stay of operation of demand pending adjudication of pre-deposit application - prohibition against coercive recovery while pre-deposit application is pending - Operation of the demand dated 1-2-2012 was stayed until the Tribunal takes up the petitioner's application for waiver of pre-deposit. - HELD THAT: - The petitioner's application had been listed and adjourned to a distant date; meanwhile, the Revenue issued a demand notice seeking recovery of the amount under the order-in-original. The Court regarded such recovery steps, taken while the pre-deposit application remained unadjudicated, as amounting to arm twisting and not permissible. In view of the delay in the Tribunal taking up the waiver application and the consequent hardship to the petitioner, the Court directed that the demand dated 1-2-2012 shall not be acted upon until the Tribunal considers the application. [Paras 2, 3, 5]Stay the operation of the demand dated 1-2-2012 until the Tribunal takes up the application for waiver of pre-deposit.Final Conclusion: Court directed that applications for waiver of pre-deposit be given priority by the Tribunal and stayed the operation of the demand dated 1-2-2012 until the Tribunal adjudicates the petitioner's pre-deposit waiver application; Revenue to take instructions. The High Court criticized the Customs, Excise and Service Tax Appellate Tribunal for delaying the petitioner's application for waiver of pre-deposit. The Court stayed the demand for payment until the Tribunal addresses the waiver application promptly.