On the question of recovery of dues during pendency of stay application before the Commissioner (Appeal), the matter was examined by the Board and necessary instructions were issued vide Circular No. 23/90-CX.6 dated 12.12.1990 issued from F.No. 209/ 107/89-CX.6 and Circular No. 16/92-CX.6 dated 12.11.1992 issued from F.No. 208/59/92-CX.6. According to these instructions, Central Excise Officers were to allow a period of three months from the date of decision for payment of dues adjudicated before resorting to coercive measures to recover such dues. However, if the stay application is rejected by the Commissioner (Appeal) even before the lapse of time of three months, recovery proceedings should be initiated immediately. The Commissioner (Appeals) were also directed to dispose of stay application within the period of two months in case the Commissioner (Appeal) was not in a position to dispose of the main appeal within the same time-frame.

2.     Recently, the Bombay High Court has ordered that Commissioner (Appeal) may be directed to dispose of stay application within the specified time limit and during the pendency of stay application no coercive action should be taken to realise the arrears of revenue.

3.     Keeping the aforesaid in view, the Board has decided that no coercive action should be taken to realise the dues till the disposal of the stay application by the Commissioner (Appeal) and the Commissioner (Appeal) must dispose of the stay application within one month of its filing.