Appellant directed to deposit Rs. 75 lakhs within 4 weeks for waiver of pre-deposit in Central Excise Act appeal

The Tribunal directed the appellant to deposit Rs. 75 lakhs within four weeks for a Stay Petition seeking waiver of pre-deposit of interest demanded under Section 11A(2B) of the Central Excise Act, 1944. Upon compliance, the Tribunal allowed the application for waiver of pre-deposit of the balance amounts, staying the recovery until the appeal's disposal, subject to specified conditions.

---

---

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.

---