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2014 (9) TMI 561 - HC - Central ExciseCondonation of delay for filing an appeal before Appellate Authority for Industrial and Financial Reconstruction (AAIFR) - Sick unit - order issued versus order served - AAIFR condoned the delay in favor of revenue - Held that:- order dated 21st July, 2008, was passed without issue of notice and hearing the respondent-Revenue on the question whether or not waiver of interest/penal interest or penalty were justified. Directions were issued for waiver of entire interest levied or leviable on excise duty and service tax arrears. It was further directed that the payment of the principal amount should be made in five annual instalments, without any interest/penal interest or penalty. (The modified scheme refers to period of 7 years and 5 annual instalments for payment but the learned counsel for the petitioner has stated that the scheme, which was actually sanctioned, postulated payment of dues in 5 years). It is apparent and manifest that there was violation of principles of natural justice. This is why the Revenue had filed an appeal, inter alia, stating that the order directing complete waiver of interest and penalty should not have been passed without hearing them and without their point of view being considered and examined by the BIFR. It is submitted on behalf of the respondent-Revenue that settlement cannot be forced and imposed on an unwilling party and whether or not to accept the terms had to be decided by the Central Excise authorities in accordance with law as per the guidelines in vogue and applicable. AAIFR has rightly relied on the decision of a Division Bench of this Court in Director-General of Income Tax (Admn) vs. Board of Industrial and Financial Reconstruction and Ors.,[2000 (8) TMI 981 - HIGH COURT OF DELHI]. - Decided against assessee.
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