Download Document

Circular No. 967/01/ 2013 – CX
F. No. 208/36/2012-CX.6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs, New Delhi

New Delhi, the Dated 1
st
January, 2013

To,

(i) The Chief Commissioner of Central Excise (All),
(ii) The Chief Commissioner of Central Excise & Customs (All),
(iii) The Chief Commissioner of Customs (All),
(iv) Directors General (All)

Madam/ Sir,

Subject - Recovery of confirmed demand during pendency of stay application- regarding

I am directed to bring your attention to the following circulars issued from time to time on the
above issue and to state that it has been decided to rescind these circulars with immediate effect.



2) Henceforth, recovery proceedings shall be initiated against a confirmed demand in terms of the
following order –

Sl No Appellate Authority Situation Directions regarding recovery.
1 NIL No appeal filed against a
confirmatory order in
original against which
appeal lies with
Commissioner (Appeals).

Recovery to be initiated after expiry of
statutory period of 60 days for filing
appeal.
2 Commissioner
(Appeals)
Appeal filed without stay
application against a
confirmatory order in
original.

Recovery to be initiated after such an
appeal has been filed, without waiting
for the statutory 60 days period to be
exhausted.
3 Commissioner
(Appeals)
Appeal filed with a stay
application against an order
in original.
Recovery to be initiated 30 days after
the filing of appeal, if no stay is
granted or after the disposal of stay
petition in accordance with the
conditions of stay, if any specified,
whichever is earlier.

4 NIL No appeal filed against an
Order in Original issued by
the Commissioner.

Recovery to be initiated after expiry of
statutory period of 90 days for filing
appeal from the date of
communication of order.
5 CESTAT Appeal filed without stay
application against an
Order in Original issued by
Recovery to be initiated on filing of
such an appeal, without waiting for
the statutory 90 days period to be
Sl No Date Circular no and File number of CX-6
1 18-11-88 80/88 and 208/31/88
2 2-3-90 7/90 and 208/107/89
3 21-12-90 23/90 and 209/107/89
4 12-11-92 16/92 and 208/59/92
5 3-8-94 47/47/94 and 208/33/94
6 2-6-98 396/29/98 and 201/04/98
7 25-2-2004 788/21/2004 and 208/41/2003

the Commissioner. exhausted.

6 CESTAT Appeal filed with a stay
application against an
Order in Original issued by
the Commissioner.
Recovery to be initiated 30 days after
the filing of appeal, if no stay is
granted or after the disposal of stay
petition in accordance with the
conditions of stay, if any, whichever is
earlier.

7 NIL No appeal filed against an
Order in Appeal issued by a
Commissioner (Appeals)
confirming the demand for
the first time.

Recovery to be initiated after expiry of
statutory period of 90 days for filing
appeal from the date of
communication of order.
8 CESTAT Appeal filed without stay
application against an
Order in Appeal confirming
the demand for the first
time.

Recovery to be initiated on filing of
such an appeal in the CESTAT,
without waiting for the statutory 90
days period to be exhausted.
9 CESTAT Appeal filed with a stay
application against an
Order in Appeal confirming
the demand for the first
time.
Recovery to be initiated 30 days after
the filing of appeal, if no stay is
granted or after the disposal of stay
petition in accordance with the
conditions of stay, if any, whichever is
earlier.

10 CESTAT All cases where
Commissioner (Appeals)
confirms demand in the
Order in original.

Recovery to be initiated immediately
on the issue of Order in Appeal.
11

High Court or
Supreme Court
Tribunal or High Court
confirms the demand.
Recovery to be initiated immediately
on the issue of order by the Tribunal
or the High Court, if no stay is in
operation.

3) It may be noted that a confirmed demand remains an order in operation till it is stayed. Mere
preferment of appeal itself does not operate as a stay. Hon’ble Supreme Court in case of Collector of
Customs, Bombay Vs Krishna Sales (P) Ltd [1994 (73) E.L.T 519 (S.C)] has observed that “As is well
known, mere filing of an Appeal does not operate as a stay or suspension of the Order appealed
against”. Accordingly, the above directions are hereby issued for initiating recovery of the confirmed
demands.

4) Instructions in CBEC’s Excise Manual of Supplementary instructions on the above subject or any
other circular, instruction or letter contrary to this circular stand amended accordingly.

Yours faithfully,


(V.P. Singh)
OSD (CX-6)