TaxTMI 
TaxTMI 
Orders of Appellate Tribunal - Action on expiry of stay orders given by the CESTAT
X X X X Extracts X X X X
X X X X Extracts X X X X
....ity in implementation of the provisions of section 35C(2A) of the Central Excise Act, 1944. In this regard attention is invited to Section 35C(2A) of the Central Excise Act, 1944 which reads as under :- "(2A) The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed : Provided that wher....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s within three years, as far as possible. It also stated that in case a stay is granted by the Tribunal in an appeal, then the Tribunal should dispose of the appeal within six months from the date of the stay order failing which the stay order would stand vacated at the end of six months from the date of the stay order. This effectively meant that a stay order of the Tribunal would normally be ope....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o given can not be circumscribed and the Tribunal, on an application made by the party, would be competent to extend the period of stay, [Emphasis supplied]. 3. The Apex Court has upheld both the above decisions of the Tribunal and observed that the sub-section which was introduced in terrorem cannot be construed as punishing the assessees for matters which may be completely beyond their contro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2005 (180) E.L.T. 434 (SC]. 4. A harmonious reading of the statutory provision and judicial pronouncements in the matter would mean that while the Tribunals are expected to dispose of cases as stipulated in the above section, nothing prevents them from granting stay beyond six months. However, the extension of stay has to be applied for by the party. Thus, the outcome of the above interpretatio....