Recovery of dues during pendency of stay petition/application - Central Excise - 80/88-CX.6

Recovery of dues during pendency of stay petition/application Circular No. 80/88-CX.6 Dated 18-11-1988 [From F. No. 208/31/88-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Recovery of dues during pendency of stay petition / application. I am directed to say that cases have been brought to the notice of the Board where some High Courts as well as the CEGAT have, inter alia, observed that it was not fair on the part of Central Excise Department to take recourse to coercive measures for recovery of Govt. dues during the pendency of stay petition / application of assessees. In the light of those observances some Collectors have raised doubts as to whether Board's Instructions F. No. 208/3/86-CX.6, dated 26-8-1986 needed any revision. 2. The matter has been examined by the Board in consultation with the Law Ministry. The Law Ministry have, inter alia, opined that the Department is within its right to proceed with the recovery proceedings after waiting for decision on the stay application for a reasonable period, which would depend on the facts and circumstance of a particular case. The observations made by some High Courts and the CEGAT would not change the legal position that mere pendency of a stay application cannot be a legal bar to proceed with recovery proceedings, in the absence of a specific order against the same. (A copy of opinion given by Ministry of Law is enclosed).(Not Printed). 3. The Board has accepted the Law Ministry's advice. In view of this there is no need to review Board's Instructions dated 26-8-1986 referred to above. 4. This may be brought to the notice of the field formations. (This disposes of Collector of Central Excise, Bombay's D.O. No. V (Ch. 24) 17/HLC/1988, dated April, 88 and Collector of Central Excise, Calcutta-II's letter F. No. C. No. IV (16) 30-CE/PRO/WB/80/, dt. 17-6-1988).