Validity of Staty order

[Pradeep Jain]

Dear Sir,

 Following changes made with respect to validity of Stay Order  in  Union budget 2013-14

Section 35C (2A) of the central Excise Act,1944 being amended to provide for a maximum ceiling of 365 days up to which the Tribunal can grant stay of recoveries. By inserting a proviso in the abovementioned sections, it is being stipulated that after 365 days from the stay order, this stay shall stand vacated even if the disposal of the case is pending for no fault of the assessee.

Our query is that-

1- We have been granted Stay Order by CESTAT , New Delhi sicne 2008 in 6 cases. These cases are not  heard till day , in spite of early hearing application filed by the department.

 In view of the above  changes , our query is that:-

- will the said stay order be vacated and need to appeal before CESTAT for extention of the stay order ?

- can department take any action for the recovery of the demand of excise confirmed by lower authoriy ?

Kindly advise.

Thanking you

Pradeep Jain

[YAGAY andSUN]

Chandra Engineers Versus CCE (2013 (4) TMI 206 - CESTAT NEW DELHI)

AI Summary

Temporal ceiling on stay orders limits tribunal extensions and can cause automatic vacation of stays if time expires. A statutory amendment imposes a temporal ceiling on tribunal-granted stays of recovery so that, once the prescribed maximum period lapses, the stay is automatically vacated even if the case remains pending; affected taxpayers must seek extension or other relief within that period, and tax authorities may proceed with recovery of demands confirmed by lower authorities once the stay lapses.