Recovery of confirmed demand – CBEC issues new guidelines
5th January, 2013
New guidelines for initiating recovery proceedings by the Revenue Department have been issued the Central Board of Excise and Customs (CBE&C). The circular issued recently for this purpose relates to recovery in cases where the stay application is pending or where no stay application or appeal has been filed against the order confirming demand of tax / duty. Circular No.967/1/2013-CX, issued on the first day of this year supersedes earlier circulars issued on this subject besides amending the CBEC’s Excise Manual of Supplementary instructions.
As per the circular, in cases where an appeal has been filed along with a stay application against an adjudication order, recovery proceedings are to be initiated after 30 days of filing of such appeal if stay has not been granted. The new procedure is applicable in all the cases of appeals lying with the Commissioner (Appeals) and with the CESTAT. In case where no appeal has been filed, the circular instructs the department to wait for completion of the statutory period for filing of appeal (Statutory period for filing of appeal to Commissioner (Appeals) and CESTAT is 60 and 90 days respectively). If appeal has been filed without stay application, recovery proceedings will commence without waiting for expiry of the statutory time period for filing appeal.
The said procedure would also be applicable in cases where appeal to CESTAT is against an order-in-appeal [Order of Commissioner (Appeals)] where the demand is confirmed for the first time. In cases where the Tribunal or the High Court confirms the demand, recovery will be initiated immediately on issue of the relevant order, if no stay is in operation. The present instructions, referred to as draconian in some quarters, rely on an earlier Supreme Court Order in the case of Krishna Sales (P) Ltd.