Interim protection against recovery granted while pending excise appeal and stay application were directed for expeditious disposal.

Recovery pursuant to a demand notice was restrained while a statutory appeal under Section 35 of the Central Excise Act remained pending and the stay application had not been decided. The High Court directed the appellate authority to dispose of the appeal, or alternatively the stay application, within three weeks of filing a certified copy of the order. Until one of those matters was decided, the petitioner was protected against recovery of the amount covered by the demand notice.

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Issues: Whether recovery pursuant to the demand notice should be stayed pending disposal of the appeal or the stay application before the appellate authority, and whether the appellate authority should be directed to decide the pending matter within a fixed time.

Analysis: The writ petition was filed because the demand notice was followed by recovery proceedings while the statutory appeal under Section 35 of the Central Excise Act remained pending before the appellate authority. As the appeal had already been heard and the stay application was still awaiting decision, the Court directed the appellate authority to dispose of the appeal or, alternatively, the stay application expeditiously within three weeks after filing of a certified copy of the order. The Court also protected the petitioner against recovery of the amount mentioned in the demand notice until one of those matters was decided.

Outcome: Interim protection against recovery was granted, and the appellate authority was directed to decide the pending appeal or stay application within the stipulated time.

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