2015 (7) TMI 720 - HC - Central Excise

Extension of stay order - Power of tribunal to extend stay beyond the period of 365 days - Held that - Tribunal is bound by the provision and that the power to extend such interim orders is dependent on the exercise of discretion by the High Court under Article 226 of the Constitution. In these circumstances, the impugned order cannot be sustained - Decision in the case of CIT v. Maruti Suzuki (India) Ltd. 2014 (2) TMI 1037 - DELHI HIGH COURT followed - Decided in favour of Revenue.

Summary

The Delhi High Court challenged a Customs, Excise and Service Tax Appellate Tribunal (CESTAT) order extending an interim order for a respondent assessee. The Court noted a similar case involving the Income Tax Act, where the Tribunal was bound by a provision limiting extension of interim orders. The impugned order was not sustained, but the Revenue was restrained from taking coercive action for four weeks to allow the respondent to move the Court under Article 226 of the Constitution if needed.