2014 (8) TMI 737

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....otal period of 365 days from the date of grant of initial stay, the appellant has preferred the present Tax Appeal with the following proposed substantial question of law : "(1) Whether in the facts and circumstances of the case, the Tribunal has committed substantial error of law in extending stay of recovery from the respondent beyond period of 365 days, in violation of statutory provisions contained in Section 35C(2A) of Central Excise Act, 1944?" (2) Whether the Honourable Customs, Excise and Service Tax Appellate Tribunal (CESTAT) West Zonal Bench, Ahmedabad, while passing Order No.A/10356-10389/2014 dated 28/1/2014 in Appeal No.E/917/2012 has committed an error in passing a common non-speaking order for extension of stay when each m....

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....nitial stay. However, as observed by the Hon'ble Supreme Court in the case of Kumar Cotton Mills Pvt. Ltd (supra), it should not be construed that any latitude is given to the Appellate Tribunal to extend the period of stay except on good cause and if the Appellate Tribunal is satisfied that the matter could not be heard and disposed of by reason of the fault of the Appellate Tribunal for the reasons not attributable to the assessee. It also may not be construed that the Appellate Tribunal can extend stay indefinitely. On expiry of every 180 days the concerned assessee / appellant is required to submit an appropriate application before the learned Appellate Tribunal to extend the stay granted earlier and the Appellate Tribunal may extend th....

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....the Question No.2 is concerned, i.e. Whether the learned Appellate Tribunal is required to pass a speaking order while extending stay or not, for the reasons stated above, the said question is answered in favour of the revenue - department and against the assessee. Consequently, all the matters are remanded to the learned Appellate Tribunal to pass appropriate order afresh and pass speaking and reasoned order in light of the observations made hereinabove. Such exercise shall be completed within a period of two months from today. So as to see that the applications of the respective appellants / assesses for extension of stay do not become infructuous, it is directed that the stay order which is extended by the Appellate Tribunal shall be con....