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2014 (7) TMI 201 - CESTAT NEW DELHIExtension of stay granted - Waiver of pre deposit already granted - Held that:- A provisions of Section 35C(2A) enact a sunset period for operation of an order of stay granted and not for the vitality of an order of waiver of pre deposit. Pre deposit is a condition precedent for entertaining an appeal. This requirement is enjoined by Section 35F of the Central Excise Act, 1944. Pre deposit once order (or waived) will operate for the duration of the appeal and is not subject to sunset period. An order granting stay is however, as earlier noticed, is in exercise of inherent power of the Tribunal, not in exercise of a legislated grant of power. It is the stay granted in exercise of such inherent power that is subject to the sunset clause enacted in Section 35C(2A) of the 1944 Act. Even where no stay is granted by the Tribunal and mere waiver of pre deposit is ordered under Section 35F, such order of waiver of pre deposit would operate as stay all further proceedings for recovery of the adjudicated liability; since parameters for grant of stay and for waiver of pre deposit are in pari materia. Order dated 9.12.2011, granting waiver of pre deposit of penalty (on noticing that the assessed tax demand had been remitted), is a grant of waiver that would operate during pendency of this appeal and the order of waiver is not subject to the provisions of Section 35C(2A) of the 1944 Act. Since waiver of pre deposit was alone granted on 21.12.2011, the Respondent shall taken an appropriate decision in conformity with the law declared by the Kerala High Court in Ashoka Rubber Products [1989 (7) TMI 103 - HIGH COURT OF KERALA AT ERNAKULAM] - Decided in favour of Revenue.
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