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TMI Blog2013 (8) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax demand of Rs.70,17,285/- besides ordering recovery of interest and penalty as specified therein. The appeal filed in 2011 could not yet be disposed of for no fault of the assessee and on account of the huge backlog of pending appeals before this Tribunal, not only before the Delhi Bench but almost all Benches of this Tribunal. 3. Section 35F of the Central Excise Act, 1944 (made applicable to matters pertaining to service tax) qua Section 83 of the Finance Act, 1994 (the Act) enacts that where in any particular case, the Tribunal is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to any person, the Tribunal may dispense with such deposit subject to such conditions as it may deem fit to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he orders of this Tribunal and provides inter alia ( in clause 2A therein) that every appeal (where it is possible to do so) shall be decided within a period of three years from the date on which such appeal is filed. The first provision to clause (2A) enacts that where an order of stay is made in any proceeding relating to an appeal filed under sub-section (1) of Section 35B, the Appellate Tribunal shall dispose of the appeal within a period of 180 days from the date of such order. The 2nd proviso enjoins that if such appeal is not disposed of within the period specified in the first proviso , the stay order shall, on the expiry of that period, stand vacated. The 2nd proviso thus enjoins that stay granted by the Tribunal would stand eclips ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the second proviso to Section 35C(2A) of the Act. The amendment reads as under: Provided also that where such appeal is not disposed of within the period specified in the first proviso, the Appellate Tribunal may, on an application made in this behalf by a party and on being satisfied that the delay in disposing of the appeal is not attributable to such party, extend the period of stay to such further period, as it thinks fit, not exceeding one hundred and eight five days, and in case the appeal is not so disposed of within the total period of three hundred and sixty five days from the date of order referred to in the first proviso, the stay order shall, on the expiry of the said period, stand vacated. 7. It is contended on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is not disposed of within two weeks. 9. The incapacity of the Tribunal to dispose of appeals (where an order of stay is granted) within a period of 180 days (earlier) or 365 days (as at present) is not attributable to any protractive or dilatory conduct of the assessees. 10. For the aforesaid reason we are of the considered view that the interpretation placed by the Supreme Court in Kumar Cotton Mills Pvt. Ltd. (supra), on the 2nd proviso to Section 35C(2A) of 1944 Act is a fortiori applicable to the proviso introduced into the provision by the Finance Act, 2013. Since the present appeal could not be disposed of within 365 days, for no fault of the assessee, and a prima facie case in favour the assessee was recorded by the earlier order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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