2008 (10) TMI 134 - AT - Service Tax

Appellant PSU seeks for an interim stay against the recovery of the amount held that order of Chennai Bench in the case of IOCL that the Tribunal is vested with inherent powers to grant interim stay to a PS unit in cases where the department is threatening and adopting coercive steps to recover the amount pending clearance from High Powered Committee is applicable - interim stay granted - Revenue is barred from recovering the amount

Summary

Issues: Appeal for waiver of pre-deposit by a PS unit, interim stay against recovery of duty, requirement of clearance from Committee of Secretaries for hearing the appeal.

Analysis:
1. The appellant, a PS unit, filed an appeal seeking waiver of pre-deposit of a substantial amount. They also sought an interim stay against the recovery of the duty amount, as the department was threatening coercive action to recover it.

2. The JCDR raised an objection, stating that the appeal cannot proceed without clearance from the Committee of Secretaries. However, the Chartered Accountant for the appellant referred to a ruling by the Chennai Bench in the case of Indian Oil Corporation Ltd. The Chennai Bench held that the Tribunal has inherent powers to grant interim stay to a PS unit when faced with coercive recovery actions by the department, even without clearance from the Committee of Secretaries.

3. After considering the submissions and the Chennai Bench's ruling, the Tribunal acknowledged its inherent powers under Rule 41 to grant interim stay to a PS unit in such circumstances. Consequently, the Tribunal granted interim stay, preventing the Revenue from recovering the amount. The order was to be issued promptly, with a mention scheduled for a later date.

This judgment highlights the Tribunal's authority to grant interim stay to PS units facing coercive recovery actions by the department, even without clearance from the Committee of Secretaries. The ruling provides clarity on the Tribunal's inherent powers in such situations, ensuring a fair process for PS units seeking relief from recovery actions.