Appeal Outcome: Penalty Order Set Aside, Duty Payment Confirmed; Appellant to Pay Rs.82,955 Interest in 3 Months.

The HC partially allowed the appeal, setting aside the penalty order while confirming the duty payment. The appellant must pay the outstanding interest of Rs.82,955 to the respondent-department within three months. The decision considered the appellant's potential dissolution. The appeal was resolved, and any pending applications were disposed of.

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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.

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