Recovery of Demands - Madras HC Stays CBEC's Draconian Circular

THIS was expected and eagerly awaited. The petitioner before the High Court prayed for:

1. Quashing the impugned Circular No.967/01/2013-CX dated 01.01.2013 in F.No.208/36/2012-CX.6 issued by the CBEC.

2. Quashing the Notice dated 9.1.2013 issued by the Assistant Commissioner.
3. Staying the impugned Circular No.967/01/2013-CX dated 01.01.2013 in F.No.208/36/2012-CX.6 issued by the CBEC.
4. Staying the operation of the impugned Notice dated 09.01.2013.

An appeal was filed to the Commissioner of Customs (Appeals) on 22.12.2011 along with the stay application and no hearing was granted so far. In the meanwhile, recovery notice has been issued on 09.01.2013 based on the impugned Circular dated 01.01.2013. Despite filing of the stay application, the direction for recovery makes it mandatory for the authority to recover the amount within a period of 30 days after the filing of the appeal even if there is a stay application pending and has not been disposed of. The plea taken is that the proviso to section 129-E of the Customs Act does not specify any time limit. In such view of the matter, it was pleaded that the circular overreaches the provisions.
The High Court posted the matter for 31.01.2013 and granted stay till then.
Why this Circular? A lawyer friend writes in, “It is not that the CBEC does not know that the recovery circular is unjust and illegal. But the reason for the issue of the said circular could be - later when the top brass of CBEC are pulled up by FM for any revenue shortfall / not achieving the target, the blame can easily be shifted to the High Courts, about which nobody can complain. CBEC will project that all its earnest attempts to garner revenue were thwarted by various High Courts and they are helpless!!!!”