Recently, Honorable Andhra Pradesh High Court has given a major reprieve in case of Ultratech Cement Ltd. Vs. Union Of India {WPMP NO 873 of 2013 dated 9-1-2013 in WP No. 730 of 2013 on 09.01.2013}. In this case, honorable High Court has granted interim stay of recovery of the amount involved, till the appellate authority disposes of the application of stay. This interim stay is granted against Circular No. 967/01/2013 – CX issued by the CBEC to brought about a significant shift in the timing of recovery of confirmed demands, where the stay applications are not disposed off by the appellate authorities, within a period of 30 days of filing thereof.

Here, we would also like to mention that CBEC has recently amended the procedure for initiation of recovery proceedings against a confirmed demand by issuing draconian Circular No. 967/01/2013-CX on the eve of First day of 2013 setting forth the decision of Hon’ble Supreme Court in the case of Collector of Customs, Bombay Vs Krishna Sales (P) Ltd [1994 (73) E.L.T 519 (S.C)]. A gist of latest amendments is presented below:-

Order Passed by Adjudication Authority/Commissioner (Appeal) confirming demand for the First Time/CESTAT		No Appeal Filed		Recovery to be initiated after the expiry of appeal filing period i.e 60 days / 90 days
		Appeal filed alongwith stay application		Recovery to be initiated 30 days after the filing of appeal, if no stay is granted, otherwise as per the conditions of the stay order.
		Appeal filed without stay application		Recovery to be initiated after filing of such appeal, without waiting for the statutory period i.e 60 days / 90 days for filling an appeal to be exhausted.

Apart from above, it is also clarified that department shall initiate recovery proceedings IMMEDIATELY in the following cases: -Where Commissioners (Appeals) confirms demand in the order in original -Tribunal or High Court confirms the demand, with no stay in operation.