Circular No. 824 /1 /2006-Central Excise
16th January 2006
F.No. 208 /1/2005-CX 6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject :- Central Excise-Prospective implementation of orders relating to valuation and classification matters or matters having recurring revenue effect – regarding.
I am directed to say that certain references have been received from field formations raising doubts over prospective implementation of the orders relating to classification, valuation or other matters having recurring revenue implications when a stay has been granted against recovery by Commissioner (Appeals) or Tribunal.
1. In this connection, your attention is invited to first proviso to section 35F of Central Excise Act, 1944. As per this provision, the Commissioner (Appeals) or the Appellate Tribunal depending on the circumstances of the case may dispense with the deposit of duty demanded or penalty levied subject to such conditions as he or it may impose to safeguard the interests of revenue. Thus, it may be seen that any stay against the order confirming the demand and/or levying penalty is only with respect to duty demanded/ penalty levied under the impugned order.
2. In view of legal position as explained above, it is hereby clarified that any stay order passed by the Commissioner (Appeals) or the Tribunal has to be examined with respect to the words used and the intention expressed by the relevant Appellate Authority. Action on the prospective implementation of the order should be taken in accordance with the provisions of the Central Excise Act, 1944 and Rules made thereunder.
3. Field formations may be informed suitably.
