2015 (7) TMI 420 - AT - Central Excise

Extension of stay order - Held that - stay orders passed by this Tribunal are in force beyond 7.8.2014 and therefore, it would continue till the disposal of the appeals. Therefore, as held by the Tribunal, there is no need for filing any further applications for extension of the orders granting stay either fully or partially in these cases. - Decision in the case of Venkateshwara Filaments Pvt. Ltd. & Others vs. Commissioner of Central Excise and Service Tax, Vapi 2014 (12) TMI 227 - CESTAT AHMEDABAD - Stay extended.

Summary

Issues:
Extension of stay granted earlier, applicability of section 35C(2A) of the CEA, 1944, observations of Coordinate Bench at Ahmedabad, disposal of appeals within 3 years, continuation of stay orders beyond 07.08.2014, need for further applications for extension of stay.

The judgment involves two cases where miscellaneous applications were filed for the extension of stay granted earlier, which had exceeded the period of 180/185 days. The Tribunal, considering the heavy pendency, typically extends the stay after verifying the cause of delay. However, a reference was made to the observations of the Coordinate Bench at Ahmedabad in the case of M/s Venkateshwara Filaments Pvt. Ltd. The Bench highlighted that the omissions of certain provisos of section 35C(2A) of the CEA, 1944 imply that there is no provision for further applications for extension of stay, and the Tribunal lacks the authority to hear such applications post a specific date. The judgment clarified that the appeal filed by an assessee must be disposed of within 3 years, but the stay orders granted by the Tribunal remain in force as per the powers granted by section 35C of the CEA, 1944.

The Tribunal agreed with the views of the Coordinate Bench at Ahmedabad and decided to follow the same decision. Upon verification, it was found that the stay orders in the two cases were still in force beyond 07.08.2014. Consequently, the Tribunal ruled that the stay would continue until the disposal of the appeals, in line with the decision in the case of Venkateshwara Filaments Pvt. Ltd. This implies that there is no requirement for filing any further applications for the extension of stay orders, whether fully or partially, in these cases. The judgment was pronounced and dictated in open court, providing clarity on the continuation of stay orders without the need for additional extension applications.

---