Customs, Excise and Gold Tribunal - Delhi
Birla Corporation Ltd. vs Commissioner Of Central Excise, Raipur on 31 January, 2002
Equivalent citations: 2002(142)ELT139(TRI-DEL)
ORDER G.R. Sharma, Member (T)
1. M/s. Birla Corporation Ltd. have filed a Stay Application No. E/S/1496/2001-NB praying for stay of recovery of the duty demanded for Rs. 28,56,901/- (Rupees twenty eight lac fifty six thousand nine hundred one), in Appeal No. E/1921/2001-NB. The applicant has filed Miscellaneous Application No. E/M/537/2001-NB for modification of the Stay Application stating that in the Stay Application the applicant had prayed for stay of recovery of duty whereas actually the stay application was filed for staying interest under Section 11AA amounting to Rs. 9,71,880/- (Rupees nine lac seventy one thousand eight hundred eighty). Arguing the Miscellaneous Application Shri Sanjay Grover, learned Counsel submits that the mistake has crept in inadvertently and, therefore, the Miscellaneous Application may be allowed.
2. We have perused the Misc. Application as well as the request made therein. Miscellaneous Application is allowed and the matter shall now remain confined to stay of interest amounting to Rs. 9,71,880/-.
3. The learned Counsel submits that Section 35F of the Central Excise Act, 1944 provides for deposit of duty demanded or penalty levied pending finalisation of the appeal. He submits that there is no mention of interest. Learned Counsel submits that duty does not include interest nor penalty can be stated to include interest and since the law specifically provides for deposit of duty demanded and penalty imposed, therefore, predeposit of interest may be waived.
4. Shri Mewa Singh, learned SDR submits that interest is payable on duty and becomes a part of duty itself. He submits that since interest can be treated as a part of duty inasmuch as it becomes recoverable just like duty, therefore, Section 35F should be considered to include interest also.
5. We have heard the submissions of both the sides. We note that two words in Section 35F of the Central Excise Act, 1944 are 'duty demanded' and 'penalty imposed'. There is no explanation appended to this section that duty includes interest also. In the absence of the specific provisions under Section 35F for predeposit of interest, we waive the predeposit of interest in the instant case. The Appeal should be listed for regular hearing on 4th March, 2002.