2023 (11) TMI 560 - SCH - Central Excise

Non-payment of Interest and penalty - by an interim order, while issuing notice in the appeal, this Court had granted an order of stay with regard to payment of penalty - HELD THAT - This Court by interim order dated 26.03.2010 had granted stay of payment of penalty and also the fact that the issues which arise in this appeal were a subject matter of controversy up to this Court and thereafter settled in the case of COMMISSIONER OF CENTRAL EXCISE, INDORE VERSUS M/S GRASIM INDUSTRIES LTD. THROUGH ITS SECRETARY 2018 (5) TMI 915 - SUPREME COURT and also the fact that the sum of Rs.69,650/- only has also been paid by way of duty by the appellant herein and what remains is a sum of Rs.82,955/- being the interest amount to be paid, we set aside the order imposing penalty in the instant case. The appellant is directed to pay the interest calculated up to date of deposit being Rs.82,955/- to the respondent-department. The said amount shall be paid within a period of three months from the date of this Order. The said time frame has been given having regard to the fact that learned counsel for the appellant submitted that the appellant-company may have been dissolved or in the process of dissolution and therefore, some time may be granted to pay the aforesaid sum. Appeal allowed in part.

Summary

Issues involved:
The judgment deals with the appeal against an order passed by the Customs, Excise And Service Tax Appellate Tribunal, involving the payment of duty, interest, and penalty.

Payment of Duty:
The Tribunal's order allowed the appeal filed by the Revenue, setting aside the order passed by the Commissioner of Appeals and confirming the order of the adjudicating authority regarding the duty payment.

Payment of Interest and Penalty:
The appellant tendered the duty amount but did not deposit interest and penalty due to an interim stay granted by the Court. The respondent-department highlighted that interest of Rs.82,955 remained unpaid, despite the interim stay being limited to the penalty. The appellant argued that the issue was unsettled by previous judgments until the case of CCE vs. Grasim Industries Ltd., and requested the penalty order to be set aside. The respondent-department suggested that if the outstanding interest amount is paid within a specified timeframe, a decision on the penalty could be made.

Judgment:
Considering the submissions and previous orders, the Court set aside the penalty order and directed the appellant to pay the outstanding interest of Rs.82,955 to the respondent-department within three months. The timeframe was given considering the possibility of the appellant-company being dissolved or in the process of dissolution. The appeal was allowed in part and disposed of accordingly, with any pending applications also being resolved.