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March 2013

Can recovery be made from the bank in spite of interim stay granted by Tribunal?

By Puloma Dalal, Jayesh Gogri, Chartered Accountants
Reading Time 1 mins
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Facts

The Appellant had filed an appeal along with the stay application with CESTAT in March, 2012. Hearing for the stay application was listed on 14th January, 2013 for which the department sought adjournment. However, the Tribunal granted interim stay as mentioning was made by the Appellant. In the meantime, the department had issued an attachment notice to the banker and the banker had deposited an amount of Rs. 6 crore into the exchequer.

Held

Interim stay was granted by the Tribunal vide its order dated 14th January 2013 and hence, it directed the department to refund the amount to the Appellant and not to proceed with the recovery proceedings during the pendency of the stay application.

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