2005 (5) TMI 456 - AT - Central Excise

Summary

Issues:
Demand of interest on duty belatedly paid by the assessee, waiver of pre-deposit, stay of recovery.

Analysis:
The judgment deals with a demand of Rs. 1,62,143/- towards interest on duty belatedly paid by the assessee, and the application for waiver of pre-deposit and stay of recovery for this amount. The Tribunal noted that there is no requirement under Section 35F of the Central Excise Act for any amount of interest on duty to be deposited for the purpose of appeal being heard. The appellant argued that the demand of interest was wrongly quantified, as the authorities calculated interest differently for two periods: 6-1-2003 to 31-3-2003 and 1-4-2003 to 3-9-2003. The appellant contested the revised rate of interest applied from 1-4-2003, claiming it was incorrect. The Tribunal acknowledged the lack of clarity in the arithmetic presented by the appellant but considered the interpretation of the notification regarding interest calculation premature. The Tribunal found no prima facie case against the impugned order but, considering the arguable nature of the case, granted stay of recovery subject to the condition of furnishing a bank guarantee for the same amount within 15 days, to be kept alive until the final hearing of the appeal.

In conclusion, the Tribunal ruled in favor of granting stay of recovery for the interest amount, despite finding no prima facie case against the impugned order. The decision was based on the arguable nature of the case and the condition of providing a bank guarantee within 15 days. The Tribunal emphasized that a correct understanding of the relevant provisions should await the final hearing stage of the appeal. The judgment highlights the importance of procedural requirements and the need for proper documentation and compliance in such matters to ensure a fair and just resolution.