2013 (11) TMI 1187 - AT - Central Excise

Demand of Interest Imposition of Penalty Held that - In order to direct the appellant to pre-deposit an amount towards interest liability, there should be some amount which has to be quantified by lower authorities - In the absence of any amount, it is not possible to come to any conclusion as to how much amount be directed to be deposited - the appellant is a public sector undertaking, Revenue s interest in the form of interest or penalty on the appellant, will not be unsecure - the application for waiver of pre-deposit of amount of interest and penalty needs to be allowed Stay granted.

Summary

Issues:
1. Contesting demand of interest and imposition of penalty on CENVAT Credit held as ineligible.

Analysis:
The appellant had reversed the entire amount of CENVAT Credit confirmed as ineligible but contested the demand for interest and penalty, arguing that the credit was never utilized on their premises. The Departmental Representative (D.R.) referred to a recent Tribunal judgment and contended that the appellant should deposit some amount towards interest liability based on precedents. The Tribunal noted the absence of a quantified amount for pre-deposit and considered the appellant being a public sector undertaking. Consequently, the Tribunal found merit in allowing the application for waiver of pre-deposit of interest and penalty amount.

This judgment highlights the importance of quantifying amounts for pre-deposit in cases involving interest and penalty demands. The Tribunal's decision to allow the waiver of pre-deposit emphasizes considerations such as the nature of the appellant being a public sector undertaking and the need for a specific amount to be determined before directing a deposit. The reference to relevant case laws and the Tribunal's analysis of the submissions made by the Departmental Representative demonstrate a thorough consideration of legal precedents and the specific circumstances of the case.

Overall, the judgment showcases a balanced approach by the Tribunal in addressing the appellant's contestation of interest and penalty demands while ensuring a fair assessment of the situation. The decision to stay the recovery of interest and penalty until the appeal's disposal reflects a cautious and equitable stance taken by the Tribunal, taking into account the appellant's arguments and the legal framework governing such matters.