Prima facie consideration of limitation plea required in stay applications against excise duty recovery.

While deciding a stay application in an excise duty appeal, the Tribunal was required to consider, at least prima facie, the assessee's plea that the demand was time-barred. The Court held that once limitation was specifically raised in support of stay, the Tribunal could not ignore that contention and had to address it in deciding whether recovery should be stayed. The stay order was therefore quashed and the matter remitted for fresh consideration of the stay prayer, including the limitation objection, in accordance with law.

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Issues: Whether the Tribunal, while deciding the stay application in an excise duty appeal, was required to deal prima facie with the plea that the demand was time-barred.

Analysis: The petition challenged the Tribunal's refusal to stay recovery of the duty demand while the appeal remained pending. A specific plea that the demand was barred by limitation had been raised before the Tribunal in the stay application. The Court held that, in such a situation, the Tribunal was bound to consider that plea at least on a prima facie basis while deciding the prayer for stay.

Conclusion: The Tribunal's order was quashed and the matter was sent back for fresh consideration of the stay prayer in accordance with law, including the limitation plea.

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