Penalty of Rs. One Lakh on Excise officer for recovery during stay period

In the case of M/s Galaxy Indo Fab. Limited  Vs. Union of India and others since the appeal could not be decided within a period of 180 days, the M/s Galaxy Indo Fab. Limited (petitioner) moved a miscellaneous application for extension of the stay order. The Tribunal vide order dated 14.8.2008 extended the stay order, already granted, till the disposal of the appeal. The aforesaid order of the Tribunal has neither been challenged by the Revenue before higher Court nor it has been vacated. The aforesaid order of the Tribunal exists till date. Despite the aforesaid order of the Tribunal granting stay till the disposal of appeal, the respondent-Assistan t Commissioner, Central Excise Division, Rae Bareli has issued the impugned notice of demand dated 11.1.2010 for recovery of Rupees 652.16 lacs.

Knowingly there is an order of Tribunal staying the demand till the disposal of appeal, the demand notice has been issued. we propose to impose an exemplary costs of Rupees one lac on the respondent-officer, which will be payable to the petitioner within two months by a account payee cheque or draft with a further warning to the officer not to act in haste and arbitrarily in future

Related posts:

1. Issues Relating to Recovery & Stay Proceedings under the Income tax
2. CESTAT is correct in allowing the benefit of penalty upto 25% of the duty amount in the case when the penalty so determined was not paid by the party within the period of thirty days which is the pre requirement to avail such benefit as per the second proviso to Section 11 AC
3. ITAT has power to extend stay, even after 2007 amendment – Identical cases in Central Excise followed : Bombay HC
4. Stay Applications uner the Income Tax Act, 1961
5. Tribunal’s power to grant stay of demand – A Study