Circular No.695/11/2003-CX
24^th February, 2003.

F.No.268/38/2002-CX.8
Government of India
Ministry of Finance and Company Affairs
Department of Revenue
Central Board of Excise & Customs

Subject : Central Excise and Customs – Disposal of refund/rebate claims where Special Leave Petition/Civil Application along with stay application is pending at Supreme Court – regarding.

            I am directed to refer to clauses (1) and (2) of Board’s Circular No.572/9/2001-CX dated 22.02.2001 which interalia provides that in cases where the Department has filed Special Leave Petition/Civil Application along with stay application against the adverse order of High Court/CEGAT as the case may be, no unilateral action should be taken by the Commissioners to release goods/order refund and decision in such cases where stay order is not forthcoming, should be taken only in consultation with the Board. In this connection, a number of references from field formations have been received.

2.         Board has examined the matter. It is observed that the above guidelines requiring consultation with Board in such cases dilute the legal position that the order of High Court/Tribunal should be implemented unless a stay has been obtained from the higher judicial forum on the implementation of the order. Further, consultation with Board in such cases may cause into delay in finalisation of the refund claims. Accordingly, Board has decided to permit jurisdictional Commissioners to take decision in such cases on merits at their level to grant refund or release goods without seeking permission/clearance from the Board. However, in the matters concerning Supreme Court, the jurisdictional Commissioners should continue to pursue with the Board for early disposal of stay application.

3.         Board’s Circular bearing No.572/9/2001-CX dated 22.02.2001 stands modified to the above extent.

4.         Field formations may please be informed suitably.

5.         Receipt of the same may please be acknowledged.

6.         Hindi version will follow.

Vijay Mohan Jain
Under Secretary to the Government of India