Pre-deposit of excise interest was not required where Section 35F covered only duty and penalty.

Interest demanded under Section 11AA of the Central Excise Act was held not to fall within the pre-deposit requirement under Section 35F, which refers only to duty demanded and penalty imposed. In the absence of any express statutory inclusion of interest within that provision, pre-deposit of the interest amount was not a condition for hearing the appeal. The waiver request was therefore justified, and stay of the interest demand was granted.

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Issues: Whether interest demanded under Section 11AA of the Central Excise Act, 1944 was required to be pre-deposited as a condition for hearing the appeal under Section 35F of the Central Excise Act, 1944.

Analysis: Section 35F refers only to deposit of duty demanded and penalty imposed. No express provision or explanation in that section treated interest as included within duty. In the absence of a specific statutory requirement for pre-deposit of interest, the request for waiver was considered justified.

Outcome: The pre-deposit of interest was waived and the matter was confined to stay of interest amounting to Rs. 9,71,880/.

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