Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

September 2015

2015 (39) STR 22 (Kar.) Atharva Associates vs. Union of India

By Puloma Dalal
Jayesh Gogri
Mandar Telang Chartered Accountants
Reading Time 1 mins
fiogf49gjkf0d
If the appeal has been filed along with stay application and neither stay application nor appeal has been disposed of, then recovery cannot be initiated.

Facts:
An Order was passed confirming demand proposed in the Show Cause Notice. Appellants preferred an appeal before first appellate authority along with stay application which was not disposed of. Meantime, the department initiated recovery proceedings by issuing notice for recovery. Appellants filed writ petition challenging the said recovery notice.

Held:
The High Court held that since the right of appeal has been exercised by the Appellants as per applicable provisions and since first appellate authority has yet to decide the stay application, the recovery notices though executable, could not be enforced or else the appeal will be infructuous or lead to multiplicity of proceedings. Enforcement of recovery was thus stayed till disposal of the stay petition by the first appellate authority.

Download PDF

You May Also Like

Free supply vis-a-vis Sale and Sale Price

2015 (39) STR 24 (Mad.) V. Sathyamoorthy & Co. vs. CESTAT Chennai.