Court orders renewal of bank guarantee pending appeal; recovery notice on hold.

The court ordered that the bank guarantee should be renewed periodically and not encashed until the Commissioner of Central Excise (Appeals) decides on the matter remitted by the Appellate Tribunal. The recovery notice was to be kept in abeyance until the expiry of the specified time limit. The writ petition was finally disposed of with these directions and observations.

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Issues:
Petitioner seeks to keep in abeyance the recovery notice until the decision on the appeal and stay petition. The main issue involves whether the recovery notice should be stayed pending the decision on the appeal and stay petition.

Analysis:
The petitioner, a contractor operating a petrol bunk, had his bank account attached due to non-remittance of taxes. The petitioner filed a writ petition seeking to keep the recovery notice in abeyance until the appeal and stay petition are decided. The Customs, Excise & Service Tax Appellate Tribunal allowed the appeal, setting aside the order and remanding the matter for fresh consideration. The court directed both parties to ensure the bank guarantee remains active and not encashed until the matter is disposed of by the Commissioner of Central Excise (Appeals).

Conclusion:
The court ordered that the bank guarantee should be renewed periodically and not encashed until the Commissioner of Central Excise (Appeals) decides on the matter remitted by the Appellate Tribunal. The recovery notice was to be kept in abeyance until the expiry of the specified time limit. The writ petition was finally disposed of with these directions and observations.

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