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TMI Blog2022 (7) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... ions as he thinks fit in regard to the payment of tax before disposal of the appeal subject to the appellant furnishing sufficient security to his satisfaction in the form and manner as he may stipulate. In a situation where the hearing of the appeal exceeds the period of 180 days from date of grant of stay, then the stay granted stands automatically vacated. The purpose of insertion of the second proviso is to ensure speedy disposal of appeals, since where interim protection is once obtained there is a tendency to stretch the benefit inordinately with the appeals stagnating inordinately. This causes accumulation of the substantial arrears of tax and penalty demands. It is to protect against such a situation that the second proviso has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment dated 14.07.2021. 3. Both the parties, i.e., the authorized representative of the petitioner as well as the learned Departmental representative were heard in detail. Upon consideration of the rival contentions, an order of stay was passed on 12.10.2021 directing the petitioner to remit a further 25% of the disputed tax on or before 12.11.2021 and to furnish a bank guarantee or adequate security for the balance demand on or before the same date. The bank guarantee/security shall be kept alive for a period of 6 months, i.e., upto 12.04.2022. 4. Admittedly, the petitioner has complied with the aforesaid order. The appeals were thereafter taken up for hearing and the petitioner commenced its submissions in the appeals on 08.04.202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late authority has, in this case, invoked the discretion that is provided for under the first proviso. The second proviso states that the directions given under the first proviso shall stand vacated, if no order is passed under sub-section (3) within a period of one hundred and eighty days of the issue of order under the said proviso . 10. Thus, in a situation where the hearing of the appeal exceeds the period of 180 days from date of grant of stay, then the stay granted stands automatically vacated. The purpose of insertion of the second proviso is to ensure speedy disposal of appeals, since where interim protection is once obtained there is a tendency to stretch the benefit inordinately with the appeals stagnating inordinately. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T) came to the conclusion that the amendment did not affect stay orders which were passed prior to the date of coming into force of the amendment and also held that the amendment did not in any way curtail the powers of the Tribunal to grant stay exceeding six months. 5. During the pendency of the appeal before this Court, the matter was referred to a Larger Bench of the Tribunal. The Larger Bench has by its decision reported in MANU/CE/0401/2004 : 2004 (169) ELT 267 : 2004 (115) ECR 112 (T-LB) upheld the view impugned in this case. The decision of the Larger Bench has not been challenged by the Department being of the view that repeated special leave petition raising the same issue was unnecessary. 6. The Sub-section which was in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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