2014 (12) TMI 239 - 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 16.04.2012. 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. Whether the Appellate Tribunal has jurisdiction to extend the stay granted beyond 365 days under Section 35C(2A) of the Central Excise Act, 1944?
2. Whether the Appellate Tribunal is required to pass a speaking/reasoned order while extending the stay granted earlier?

Issue 1: The Hon'ble High Court, relying on a Supreme Court decision, held that the CESTAT has the power to extend the stay beyond 365 days under Section 35C(2A) of the Central Excise Act, 1944. The High Court emphasized that the Tribunal can extend the stay if satisfied that the delay in disposing of the appeal is not due to the appellant and that the appellant has cooperated in early disposal. The Tribunal must pass a speaking order considering the facts of each case and record its satisfaction before extending the stay. The Tribunal must review the situation every 180 days and consider extension applications on a case-by-case basis. The Tribunal is required to prioritize appeals with stay orders for early disposal.

Issue 2: The High Court directed that the Tribunal must pass detailed speaking orders while extending stay orders. It emphasized that the Tribunal should consider whether the delay in disposing of the appeal is attributable to the appellant, whether the appellant has cooperated, and whether there are any delay tactics or attempts to gain undue advantage. The Tribunal must pass reasoned orders on each application for extension of stay, giving an opportunity to the revenue department to present its case. The Tribunal cannot extend stay orders indefinitely and should make all efforts to dispose of appeals promptly, especially those where stay is in favor of the revenue department.

In a specific case discussed in the judgment, the Tribunal granted an extension of stay for a further period of 180 days after considering the circumstances and the fact that the appeal had not been listed for final hearing due to heavy workload. The High Court's directions required the Tribunal to pass detailed speaking orders in such cases and to ensure that the appeals are disposed of promptly. The judgment highlighted the importance of maintaining a separate register for appeals with stay orders and giving priority to their disposal.