Gujarat Chamber of Commerce and Industry (GCCI), the apex body of trade and industry in the state has opposed a circular by Central Board of Excise and Customs, wherein the department can initiate recovery against a private company if the appeal of stay order by a company is not disposed within one month.

Normally recovery is not initiated if a petition of stay-order is pending with the appellate authorities. The latest circular dated January 1, 2013 empowers CBEC officials to initiate recovery if the petition of stay order is not disposed within a month.

Recently High Courts of Andhra Pradesh, Maharashtra and Tamil Nadu have granted interim relief to the companies against the CBEC circular. "Large companies can approach High Court for interim relief, but the same is not true for small and medium sized players," said a GCCI statement.