2010 (8) TMI 540 - AT - Central Excise

Waiver of pre-deposit - Interest on duty and penalty - The appellant paid the entire amount of duty prior to issuance of the show-cause notice - The delay in payment of duty was on account of financial difficulties only - Department submits that, by defaulting payments of duty consecutively, they lost their right to avail CENVAT credit or to avail the benefit of fortnightly payment of duty - Any order of forfeiture of fortnightly payment of duty was not issued to the appellant by the competent officer of Central Excise and, therefore, apparently, the party could not be prevented from availing CENVAT credit. In any case, the entire amount of duty was paid prior to issuance of the show-cause notice, a fact not in dispute - Therefore, grant waiver of pre-deposit and stay of recovery in respect of the penalty as well as interest on duty.

Summary

The Appellate Tribunal CESTAT, Mumbai found that the appellant paid over Rs. 35 lakhs of duty for the period October 2002 to October 2007 before the show-cause notice was issued. The remaining dues were interest on duty under Section 11AB and penalty under Section 11AC of the Central Excise Act. The tribunal granted waiver of pre-deposit and stay of recovery for the penalty and interest on duty. Similar relief was given for the penalty imposed on the company director.