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2017 (2) TMI 614 - AT - Central ExciseWhether the appellant is required to pay interest from the date of default till 23.01.2006 that is, the date of deposit of ₹ 50.00 Lakhs u/s 35F of CEA, 1944, as a condition to hear their appeal, or to be paid till they reversed the credit i.e. 10.09.2012 pursuant to the order of the Tribunal reducing the demand to ₹ 9,88,236/-? - Held that: - though the appellant was required to deposit the entire amount of duty and penalty, however, the Tribunal has reduced the said pre-deposit amount to ₹ 50.00 Lakhs against the confirmed liability of ₹ 2.64 crores. Therefore, it is incorrect to say that the appellant had not paid the amount of ₹ 9,88,236/- as on 23.01.2006, which was ultimately confirmed by the Tribunal, in disposing their appeal by Order dt.29.06.2012 and reversed by the Appellant on 10.09.2012, pursuant to the said Order. Whether benefit to discharge 25% of the penalty be extended to the appellant considering adjustment of interest from the pre-deposit amount? - Held that: - the appellant is required to pay interest till 23.01.2006 and consequently, also eligible to claim the benefit to discharge 25% of the penalty of ₹ 9,88,236/-, since, they complied with the direction of the Tribunal Order dated 29.06.2012, in the sense that the required amount due pursuant to the said Order was lying with the department as on the date of the order of the Tribunal. Appeal allowed - decided in favor of appellant.
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