COMMISSIONER OF CENTRAL EXCISE Vs. COSMOS DENIM

JUDGEMENT

(1.) DEPARTMENT has filed this appeal calling in question the judgment of the Customs, Excise and Service Tax Appellate Tribunal ['CESTAT' for short] dated 15.01.2014 extending the stay by a period of six months from the date of the order till disposal of the appeal whichever is earlier. The case of the revenue is that in terms of Section 35C(2A) of the Central Excise Act, 1944 as it stood, at the relevant time, the Tribunal could not have extended the stay beyond the period of 365 days from the date it was initially granted. Following substantial question of law is suggested:

(2.) THIS issue, however, is no longer res integra. Different High Courts have though taken slightly different views insofar as this High Court is concerned in case of Commissioner v. Small Industries Development Bank of India : 2014 (307) ELT 417 (Ahd.), it clearly held that the Tribunal in appropriate cases may extend the stay even beyond 365 days from the date of initial grant of stay. The Court held and observed as under:

(3.) IN view of the decision of this Court in case of Small Industries Development Bank of India (supra) it can be concluded that the Tribunal did not lack the power to extend stay beyond 365 days from the initial date of granting stay. However, if the stand of the revenue is that such extension was without recording reasons or without passing speaking order as required by the decision of this Court in case of Small Industries Development Bank of India (supra) it would be open for the Department to move a rectification application before the Tribunal. With above observations, this tax appeal is disposed of.