Stay on recovery may continue where Tribunal delay is not attributable to the assessee, with expeditious disposal required.

Section 35C(2A) requires timely disposal of appeals and does not support indefinite continuation of stay as a routine matter. Extension of stay is justified where the delay in disposal is not attributable to the assessee and the Tribunal cannot hear the appeal for reasons beyond the assessee's control. Where a prima facie case has been found in favour of the assessee and the pendency arises from older matters rather than any lapse by the assessee, the stay and waiver of pre-deposit may continue for a further limited period, with directions for expeditious disposal of the appeal, preferably within that period.

---

---

Issues: Whether the waiver of pre-deposit and stay on recovery granted by the Tribunal should continue and whether the appeal before the Tribunal required expeditious disposal in light of Section 35C(2A) of the Central Excise Act, 1944.

Analysis: Section 35C(2A) contemplates timely disposal of appeals and does not permit indefinite continuation of stay as a matter of course. The governing principle, as explained in the controlling precedent, is that extension of stay may be justified where delay is not attributable to the assessee and the Tribunal is unable to dispose of the appeal for reasons beyond the assessee's control. In the present matter, the Tribunal had granted stay after finding a prima facie case in favour of the assessee and had noted that the appeal remained pending because of older matters, not because of any lapse by the assessee.

Conclusion: The stay and waiver of pre-deposit were directed to continue for six months, and the Tribunal was directed to decide the appeal expeditiously, preferably within that period.

---