2013 (11) TMI 325 - AT - Central Excise

Extended Period of Limitation Waiver of Pre-deposit of Interest Differential Duty u/s 11A (2B) of CE Act Held that - The contention of Counsel as to no duty liability arises, needs to be gone into detail, which can be done only at the time of final disposal of the appeals the contention that the show cause notice is invoking extended period is correct as decided in GUJARAT STATE FERTILISERS & CHEM. LTD. Versus COMMR. OF C. EX., VADODARA-I 2013 (9) TMI 581 - CESTAT AHMEDABAD - the extended period cannot be invoked - the show cause notice also provides the period which is within limitation - Since we are unable to come to a conclusion what will be the amount which will fall within the limitation period, we direct - the appellant directed to deposit an amount of Rupees Seventy Five Lakhs as pre-deposit upon such submission rest of the duty to be waived till the disposal Partial stay granted.

Summary

Issues:
- Stay petition for waiver of pre-deposit of interest demanded under Section 11A(2B) of Central Excise Act, 1944.

Analysis:
1. The appellant filed a Stay Petition seeking waiver of pre-deposit of interest demanded for the differential duty paid under Section 11A(2B) of the Central Excise Act, 1944.

2. The show cause notice was issued for demanding interest for the period from April 2006 to December 2010, invoking the extended period. However, the appellant voluntarily paid the amount and disputed its liability, contending that no interest is chargeable on such an amount.

3. The Tribunal noted that the contention of the appellant regarding no duty liability needs detailed examination at the time of final disposal of the appeals. It was acknowledged that the show cause notice incorrectly invoked the extended period, as per the precedent set in the case of Gujarat Fertilizers & Chemicals Ltd. The notice also indicated a period within the limitation.

4. Due to uncertainty regarding the amount falling within the limitation period, the Tribunal directed the appellant to deposit Rs. 75 lakhs within four weeks and report compliance. The Deputy Registrar was instructed to verify compliance and present the file for further orders.

5. Upon compliance with the deposit, the Tribunal allowed the application for waiver of pre-deposit of the balance amounts, staying the recovery until the appeal's disposal. The decision was announced in court, subject to the specified conditions.