The Central Government has granted relief to assesses plagued
by the recovery methods adopted by the tax authorities vide CBEC
Circular No. 1035/23/2016-CX dated July 4, 2016
The Central Board of Excise and Customs ('CBEC') vide
Circular No. 1035/23/2016-CX dated July 4, 2016 reviewed its
earlier Circular No. 967/1/2013-CX dated January 1, 2013 on the
issue of recovery of confirmed demands during the pendency of stay
application filed by the assessee. It has been typical of the tax
authorities, upon confirmation of demand from the higher
authorities to immediately commence recovery procedure against
assessees without allowing the full benefit of statutory period
prescribed for filing of appeals (along with stay
In an attempt at trade liberalization and non-adversial
approach, the CBEC has decided that recovery steps cannot be
initiated before expiry of 60 days from the date of order and no
recovery can be initiated during the pendency period of stay
application. Thus, it is a major relief for assesses to strategize
the appeal and obtain stay from the higher authority. The salient
features of the circular are as under:-
1. When stay application is pending before Commissioner
(Appeals) or CESTAT
The CBEC has accepted the view of Hon'ble High Court of
Punjab and Haryana, expressed in the case of M/s PML Industries
Ltd. Vs Commissioner of Central Excise
[2013-TIOL-201-HC-P&H-CX] as confirmed by Hon'ble Supreme
Court vide SLP (Civil) 765/2014, holding that recovery cannot be
made during the pendency of the stay application before the
notified appellate authority.
The circular thus provides that cases
which are pending before Commissioner (Appeals) or CESTAT for
periods prior to August 6, 2014, no steps for recovery shall be
taken during the pendency of the stay application.
2. When demand is confirmed by Hon'ble CESTAT or
Hon'ble High Court & stay is pending before Hon'ble
High Court or Hon'ble Supreme Court
It is issued that recovery proceeding in relation to an order of
Hon'ble High Court or Tribunal confirming demand of duty, may
be initiated only after a period of sixty days from the date of
order of the Hon'ble Tribunal or Hon'ble High Court.
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