2014 (12) TMI 34 - AT - Central Excise

Power of tribunal to grant stay beyond the total period of 365 days - extension of stay granted earlier - extension order should be speaking or not - Held that - stay was granted to the appellant on 26.12.2013. After granting of stay to the appellant this appeal has never been listed for final hearing. The appeal could not be listed for final hearing by the Registry due to heavy work load as the appeals filed for the earlier period are being listed. Hon ble Gujarat High Court 2014 (8) TMI 737 - GUJARAT HIGH COURT have held that extension can be allowed by the Bench looking to the facts and circumstances of this case, there is no fault of the appellant in seeking extension of the stay already granted. The request made by the appellant is genuine and extension of stay is granted for further period of 180 days - Stay granted.

Summary

Issues:
1. Jurisdiction of Appellate Tribunal to extend stay beyond 365 days under Section 35C(2A) of Central Excise Act, 1944.
2. Requirement of passing a speaking or reasoned order while extending stay.

Analysis:
1. The Hon'ble High Court addressed the first issue by relying on a Supreme Court decision, affirming that the Appellate Tribunal has the authority to extend stay beyond 365 days as per Section 35C(2A) of the Central Excise Act, 1944. The Court emphasized that such extension should be based on subjective satisfaction and good cause, not allowing indefinite extensions. The Tribunal must review the situation every 180 days and pass a speaking order for each application for extension of stay, considering individual cases.

2. Regarding the second issue, the High Court directed that the Appellate Tribunal is required to pass a speaking and reasoned order while extending stay. The Tribunal must consider various factors such as whether the delay in disposing of the appeal is attributable to the appellant, if the appellant has cooperated in early disposal, or if there are any delay tactics or attempts to gain undue advantage. The Tribunal should record its satisfaction and give an opportunity to the revenue department to challenge the extension if necessary.

3. In a specific case, the Tribunal granted an extension of stay for 180 days after considering the genuine request made by the appellant. The Court noted that the appellant had not caused any delays, and the heavy workload of the Registry was a contributing factor in the appeal not being listed for final hearing. The extension was granted in light of the facts and circumstances of the case, as per the decision of the Hon'ble Gujarat High Court.

4. In conclusion, the High Court's order clarified the jurisdiction of the Appellate Tribunal to extend stay beyond 365 days under Section 35C(2A) of the Central Excise Act, 1944, and emphasized the importance of passing speaking orders while considering extension applications. The Tribunal was directed to reexamine the extension applications and pass detailed orders within a specified timeframe to ensure fair consideration of each case.