2012 (9) TMI 738 - AT - Central Excise

Demand interest and penalty - for appropriation of interest and penalty assessees paid Demand interest and penalty out of the credit amount - Held that - interest and penalty amounts cannot be so appropriated - it should be paid in cash in favor of Revenue

Summary

The Appellate Tribunal CESTAT, Chennai allowed the appeal by setting aside the direction for appropriation of interest and penalty against the assessees. The Tribunal directed that interest and penalty should be paid in cash, but allowed re-credit of the amount paid out of the credit towards interest and penalty.