Stay of recovery of duty but not the issue of show cause notice - Central Excise - 50/89

Stay of recovery of duty but not the issue of show cause notice Circular No. 50/89 Dated 29-8-1989 [From F. No. 109/3/87-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Whether show cause notices could be issued during the pendency of a stay order issued by a Court where the Court has only stayed the recovery of duty but not the issue of show cause notice - Clarification regarding. You may be aware that the Hon'ble Supreme Court, in the case of M/s. Gokal Patel Volkat Ltd. v. Collector of Central Excise, Belgaum, had ruled that where the recovery of duty was stayed by the High Court, there was no bar in issuing demands involving further periods. 2. In this context a reference had been made to the Board on the issue whether show cause notices to safeguard the interest of revenue could be raised in a case where the Court has ordered only the stay of collection of duty and not issue of show cause notices. 3. The matter has been got examined in consultation with the Ministry of Law and a copy of their opinion is enclosed. The Law Ministry has opined that where the Court's order is only for stay of collection of duty, then if there is no stay for issue of show-cause notice, a show-cause notice can be issued for imposition of such duty. 4. Necessary action may accordingly be initiated immediately to safeguard the interest of revenue. 5. The above guidelines may be brought to the notice of the lower field formations. Enclosure Additional Solicitor General of India's Office "In view of the decision in A. 1987 SC - 1161 - Gokal Patel's case, when it is seen that where the Court's order is only for stay of collection of duty, then if there is no stay of issue of show cause notice, a show cause notice can be issued for impos