2015 (1) TMI 71

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....xtending stay beyond period of 365 days, in violation of statutory provisions contained in Section 129B(2A) of Customs Act, 1962?" 2. Short issue pertains to the power of the CESTAT to extend interim stay beyond 365 days. Revenue contended that by virtue of Section 129B( 2A) of the Customs Act, 1962, the Tribunal did not have such powers. 3. This issue, however, is no longer res integra . Different High Courts have though taken slightly different views insofar as this High Court is concerned in case of Commissioner vs. Small Industries Development Bank of India reported in 2014 (307) ELT 417, it clearly held that the Tribunal in appropriate cases may extend the stay even beyond 365 days from the date of initial grant of stay. The Cour....

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....fore the learned Appellate Tribunal to extend the stay granted earlier and the Appellate Tribunal may extend the stay for a further period but not beyond 180 days at a stretch and on arriving at the subjective satisfaction, as stated hereinabove, the Appellate Tribunal may extend the stay even beyond 365 days from the date of grant of initial stay and even thereafter. Meaning thereby after 180 days, the Appellate Tribunal is required to review the situation and consider the application for extension of stay appropriately. Thus, on expiry of maximum period of 180 days the assessee / appellant is required to submit application for extension of stay each time and the Appellate Tribunal is required to consider the individual case and pass a spe....

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....ending 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 continued for a further period of two months. It goes without saying that even during the aforesaid period of two months, the A....