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TMI Blog2016 (8) TMI 1250X X X X Extracts X X X X X X X X Extracts X X X X ..... 9386/2016-WZB/CB - Dated:- 24-8-2016 - Shri Ramesh Nair, Member (J) and Raju, Member (T) Shri T. Vishwanathan, Advocate, for the Appellant. Shri Ariharan, Addl. Commissioner (AR), for the Respondent. ORDER [Order per : Raju, Member (T)]. - The applicant, M/s. Hindustan Platinum Pvt. Ltd. have filed this application seeking to prevent Revenue from encashing bank guarantee executed by the appellant. The applicants are in appeal against Order-in-Original dated 29-2-2016 which orders encashment of two bank guaranty totalling to ₹ 70,53,000/- executed by the applicant. Out of differential duty of ₹ 29,33,56,787/- confirmed against the applicant. They have already deposited ₹ 2,20,01,760/- and therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant had relied on the Circular No. 984/8/2014-CX, dated 16-9-2014. Para 4 of the said Circular reads as follows : 4. Recovery of the Amounts during the Pendency of Appeal : 4.1 Vide Circular No. 967/1/2013, dated 1st January, 2013, Board has issued detailed instructions with regard to recovery of the amounts due to the Government during the pendency of stay applications or appeals with the appellate authority. This Circular would not apply to cases where appeal is filed after the enactment of the amended Section 35F of the Central Excise Act, 1944 or Section 129E of the Customs Act, 1962. 4.2 No coercive measures for the recovery of balance amount, i.e., the amount in excess of 7.5% or 10% deposited in terms of Section 35F of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partment is entitled to recover would be the redemption fine which is covered by the bank guarantee. The bank guarantee is executed only to safeguard the quantum of redemption fine and once the duties and penalties are stayed, the right course for the Revenue is to encash the bank guarantee to the extent of the amount of redemption fine and allow the balance amount. In view of the above discussion, we find that this application has to be allowed and the concerned Commissioner is required to be directed to encash the bank guarantee to the extent of redemption fine and bank guarantee for the rest of the amount cancelled. The Commissioner is directed to do so within a month from the date of the communication of this order. 5.2 It is seen th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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