Coercive recovery stayed pending appeal under CESTAT Procedure Rules, preserving the appellant's position until final disposal.

Under Rule 41 of the CESTAT Procedure Rules, 1982, the Tribunal considered that coercive steps arising from proceedings based on the Commissioner (Appeals)' order should be restrained while the substantive appeal remained pending, because those steps could become futile if the appeal succeeded. It therefore protected the applicant from coercive recovery or enforcement action during the pendency of the appeal, while allowing the proceedings to continue in a non-coercive manner.

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Issues: Whether coercive action pursuant to the impugned proceedings should be restrained until disposal of the pending appeal.

Analysis: The application sought directions under Rule 41 of the CESTAT Procedure Rules, 1982, because the proceedings initiated in consequence of the Commissioner (Appeals)' order would become futile if the appeal against that order was ultimately allowed. The Tribunal treated the pendency of the substantive appeal as a sufficient basis for protecting the applicant from coercive steps, while permitting the proceedings to continue in a non-coercive manner.

Conclusion: Coercive action against the applicant was directed to remain stayed during the pendency of the appeal.

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