Appeal restored after counsel's absence; interest dispute resolved in favor of appellant.

The appeal was dismissed by the Appellate Tribunal CESTAT CHENNAI due to non-appearance of counsel, who was elderly. The appellant sought restoration, arguing dismissal without considering merit violated apex court precedent. The Tribunal, noting the old appeal's ex-parte dismissal, restored it for justice. The case involved interest leviability on demand post-Tribunal decision. Appellant argued no interest due as reduced demand was paid, citing Central Excise Act provision and a Chhattisgarh High Court ruling. Revenue contended interest was payable, but Tribunal sided with appellant, allowing the appeal and directing relief per law.

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Issues: Appeal dismissal for non-appearance, restoration of appeal, leviability of interest on demand

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the appeal was dismissed due to the non-appearance of the counsel, who was 88 years old. The appellant argued that dismissing the appeal without considering its merit would be against the law established by the apex court in a specific case. The Tribunal noted that the appeal was old and had been dismissed ex-parte. To ensure justice to both sides, the restoration of the appeal was deemed necessary and subsequently done.

Regarding the merit of the case, the dispute centered around the leviability of interest on the demand arising from the Tribunal's decision. The appellant contended that as the demand reduced by the Tribunal had been paid, there should be no interest liability. The appellant referred to Explanation I to section 11BB of the Central Excise Act, 1944, to support this argument. The appellant also cited a decision by the Hon'ble High Court of Chhattisgarh in a similar case. On the contrary, the Revenue argued that the lower authority's orders were correct, and interest was indeed payable. The Tribunal, agreeing with the appellant's proposition of law supported by the Chhattisgarh High Court decision, allowed the appeal. The judgment specified that any consequential relief should be granted in accordance with the law.

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