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2026 Supreme(Online)(Bom) 4305
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
B. P. Colabawalla, Firdosh P. Pooniwalla, JJ
CG Power and Industrial Solutions Pvt Ltd – Appellant
Versus
Commissioner of Central Excise Mumbai Ill – Respondent
INTERIM APPLICATION (L) NO. 28300 OF 2024 | CENTRAL EXCISE APPEAL NO. 40 OF 2025
For the Appellants/Petitioners: Aditya Chitale, Prathmesh Bhosle
For the Respondents: None
The court may grant a stay on the recovery of the remaining balance of a tax demand if the appeal raises arguable questions and a substantial portion of the demand has already been deposited.
Headnote:The matter involves an application for a stay on the recovery of the remaining 50% of excise duty arising from an Order-in-Original. The applicant had previously deposited 50% of the total duty as conditioned by the appellate authority. The court noted that arguable questions are raised in the main appeal. The issue is whether the recovery of the balance excise duty should be stayed pending the final disposal of the appeal. The court reasoned that since the appeal has been admitted and a significant portion of the duty has already been deposited, the recovery of the remaining balance ought to be stayed. The Interim Application is disposed of in the aforesaid terms.
| Table of Content |
|---|
| 1. application for stay of balance excise duty recovery (Para 1 , 2) |
| 2. stay granted due to arguable questions and partial deposit (Para 3) |
| 3. disposal of interim application without costs (Para 4) |
CNR No : HCBM020283072024
MANSI DHANANJAY SHELKE
Digitally signed by MANSI DHANANJAY SHELKE
Date: 2026.07.20 18:19:54 +0530
P. C.
1. This Interim Application is filed by the Applicant praying that, pending the hearing and final disposal of above Central Excise Appeal, this Court be pleased to stay the effect and implementation of the Order-in-Original dated 31st December, 2012 to the extent of the remaining 50% of amount of Rs. 6,26,786/- payable toward Excise duty.
2. The Commissioner (Appeals) while granting a stay, put a condition on the Appellant that it deposit 50% of the amount of the Excise duty, i.e., 50% of the amount of Rs. 12,53,572/-. The learned counsel for the Appellant submitted that undisputedly 50% of Rs. 12,53,572/- has been deposited by the Petitioner. It is in these circumstances that a prayer is made for staying the recovery of the balance amount of Rs. 6,26,786/-.
3. We have already admitted the above Appeal today by a separate Order, wherein we have noted that arguable questions are raised in the above Appeal. Taking into consideration the Order passed by the Commissioner (Appeals) directing the Petitioner to deposit 50% of the Excise duty of the amount of Rs. 12,53,572/-, we are of the view that the recovery of the balance amount of the duty ought to be stayed. In these circumstances, we allow the above Interim Application in terms of prayer Clause (a) which reads thus :
“(a) pending the hearing and final disposal of the above Central Excise Appeal, this Hon’ble Court be pleased to stay the effect and implementation of the Order-in-Original dated 31.12.2012 to the extent of the remaining 50% amount of Rs. 6,26,786/-;”
4. The Interim Application is disposed of in the aforesaid terms. However, there shall be no order as to costs.
5. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.
