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2014 (2) TMI 56 - HC - Central ExciseWaiver of pre deposit - Imposition of penalty - Held that:- when the Tribunal itself found that it was not a case requiring the appellant no.1 company to deposit the entire duty amount but only 50% of the duty demand. It follows that ordinarily the Tribunal should not direct the appellant to deposit any amount towards penalty. We are of the view that where the Tribunal has granted a partial dispensation with predeposit, then in such cases it should not normally direct predeposit attributable to the penalty amount. In cases where the Tribunal is of the view that notwithstanding the grant of partial dispensation with predeposit, the amount of penalty or part of it should be deposited, the Tribunal shall give strong reasons to indicate why the deposit attributable to penalty amounts should be made. In fact, we have noticed that the Tribunal in its orders, while granting partial deposit, has generally not been insisting on deposit of penalty amount - we set aside the order of the Tribunal dated 29 October 2013 of CESTAT directing appellant no.1 to deposit a penalty of ₹ 5,00,000/and directing appellant no.2 to make a predeposit of ₹ 1,00,000/towards penalty. The rest of the order of the Tribunal is not disturbed. We accordingly direct the appellants to deposit the amount equal to 50% of the duty confirmed - Decided partly in favour of assessee.
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