CBEC clarifies on recovery during pendency of stay in confirmed demand of tax

By: |
New Delhi | Updated: July 05, 2016 7:25 PM

The Central Board of Excise and Customs (CBEC) has clarified on recovery of confirmed demand of tax during the pendency of stay application in relation to indirect taxes

The Central Board of Excise and Customs (CBEC) has clarified on recovery of confirmed demand of tax during the pendency of stay application in relation to indirect taxes (Reuters)The Central Board of Excise and Customs (CBEC) has clarified on recovery of confirmed demand of tax during the pendency of stay application in relation to indirect taxes (Reuters)

The Central Board of Excise and Customs (CBEC) has clarified on recovery of confirmed demand of tax during the pendency of stay application in relation to indirect taxes and said where stay is pending before Commissioner (Appeals) or CESTAT for periods prior to August 6, 2014, no recovery shall be made during the pendency of the stay application. CESTAT is Customs, Excise and Service Tax Appellate Tribunal.

Confirmed demand of tax arises when after examining the submissions of a tax payer, an order is issued confirming demand of tax from a tax payer.

An official press releases says that law on the issue was amended on August 6, 2014, where after filing of appeal requires payment of 7.5 or 10 per cent of tax demand, depending on stage of appeal, obviating the need for appellate authority to hear any stay application.

The CBEC circular further provides that in cases where demand is confirmed by CESTAT or the High Court recovery proceeding may be initiated after a period of sixty days from the date of the order provided that no stay is in operation.

The circular has been issued to ensure that the assessee gets adequate opportunity to appeal before recovery proceedings are started in indirect taxes. The Circular would also bring uniformity in practice regarding recovery of confirmed demands of tax.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1IRB Infrastructure to raise Rs 5,347 cr from GIC, Spain’s Cintra
2Over 5 crore workers registered on e-Shram portal in two months
3Winter session from November 29: Two crucial financial Bills on agenda