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TMI Blog2013 (4) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... diction to encash the guarantee of Rs. 20.00 crores. Thus it is not find that the assessee is entitled to stay of recovery proceedings during the limitation period for the filing of the appeal. There is no deemed stay of liability after the enforceable order is passed by an authority under the statute. Reference may be made to Collector of Customs, Bombay Vs. Krishna Sales (P) Ltd. [1993 (9) TMI 124 - SUPREME COURT OF INDIA] In an another judgment, the Court held that pending appeal, it is open to the Decree holder to execute decree subject to the right of restitution in Inderchand Jain v. Motilal, (2009 (7) TMI 1029 - SUPREME). The court only at the time of passing a judgment and decree reversing that of the appellate court should t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expiry of the time limit of the expiry of the appeal. Petitioner also refered to an order passed by the Bombay High Court reported as UTI Mutual Fund vs. Income Tax Officer, (2012) 345 ITR 71 (Bom), wherein the following guidelines were issued: - 1. No recovery of tax should made pending. (a) Expiry of the time limit for filing an appeal; (b) Disposal of a stay application, if any, moved by the assessee and for a reasonable period thereafter to enable the assessee to move a higher forum, if so advised. Coercive steps may, however, be adopted where the authority has reason to believe that the assessee may defeat the demand, in which case brief reasons may be indicated. 2. The stay application, if an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erative part of the order reads as under: - Mr. Alok Mittal, counsel for the petitioner-Authority points out that FDRs amount to over Rs. 90 crores whereas the demand raised against the petitioner is about Rs. 20 crores only. He further submits that some of the FDRs would be required to be encashed to discharge the due tax liability for the next assessment year and to perform other statutory responsibilities. Keeping the facts and circumstances in view and in order to protect the interest of the Revenue, we direct that the petitioner-Authority shall not withdraw or encash its fixed deposits to the tune of Rs. 20 crores till the decision of appeal by respondent No. 2, while it shall be at liberty to encash the rest of the FDRs. 5. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal or the Supreme Court, as the case may be. Without obtaining such an order they cannot refuse to implement the order under appeal. As is well-known, mere filing of an appeal does not operate as a stay or suspension of the order appealed against. Moreover, such detention is likely to create several complications relating to the demurrage charges besides the possible deterioration of the machinery and goods. We hope and trust that the Collector of Customs, Bombay shall appropriately revise the said public notice in the light of the observations made herein. If he does not do so, there is a likelihood of the Customs authorities being themselves made liable for demurrage charges in appropriate cases. 7. In an another judgment, the Court he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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