Unconditional stay on additional excise duty for exported television sets where Board circular negated sustainability of the demand.

Unconditional stay of recovery proceedings was granted against additional excise duty demanded on television sets exported out of India, as a Board circular clarified that such duty was not sustainable and that pending assessments should be finalised accordingly. On that basis, a strong prima facie case for interim relief was found, while the merits of the underlying appeals were expressly left open for later hearing. Recovery proceedings, if initiated, were stayed.

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Issues: Whether the appellants were entitled to unconditional stay of recovery proceedings in respect of additional excise duty demanded on television sets exported out of India.

Analysis: The applications were considered in the light of the Board's circular clarifying that additional excise duty on television sets exported out of India was not sustainable and that pending assessments should be finalised accordingly. On that basis, a strong prima facie case was found for interim relief. The merits of the underlying appeals were expressly kept open for future hearing.

Conclusion: The stay applications were allowed unconditionally and recovery proceedings, if initiated, were stayed.

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