2013 (3) TMI 635 - HC - Central Excise

Summary

Issues involved: Challenge to recovery notice dated 10.1.2013 based on CBEC circular dated 1.1.2013, delay in disposal of appeals by appellate Commissioner.

Challenge to Recovery Notice: Petitioners challenged the recovery notice dated 10.1.2013 issued based on CBEC circular dated 1.1.2013, which required recovery proceedings pending appeal and stay application to be initiated only when the delay could be attributed to the assessee. The High Court held that the impugned notice could not survive in light of the conclusions drawn regarding the circular. The notice was quashed and the resultant attachment notice was set aside.

Delay in Disposal of Appeals: The High Court expressed concern over the delay in the appellate Commissioner's decision on interim applications for nearly three years. It was noted that the issues in all the appeals were identical and should not occupy significant time. The Court directed the appellate Commissioner to decide and dispose of the appeals by 31st July 2013. Until then, there would be no recovery of the demand confirmed by the adjudicating authority.

Conclusion: The High Court disposed of the petition with directions to the appellate Commissioner for timely disposal of appeals and emphasized the importance of adhering to the guidelines set forth in the CBEC circular dated 1.1.2013.