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2019 (6) TMI 333 - AT - CustomsInterest on pre-deposit - payment of duty after reversal of duty debited in DEPB scrips is pre-deposit OR duty payment - Section 129E of the Customs Act, 1962 - HELD THAT:- Section 129E required the appellant to deposit, pending an appeal, the entire amount of duty or interest demanded or penalty levied. In cases where the appellant files a stay application, the CESTAT often grants either complete waiver of pre-deposit or a partial waiver thereof. In case of partial waiver the appellant deposits some amount as directed by the CESTAT. It is the case of the first appellate authority that only when such application is made and part of the payment is made in pursuance of the stay order it can be called as pre-deposit. Where the entire amount of duty demanded is paid, it is the duty and not pre-deposit. A plain reading of section 129E does not say so. In fact, there cannot be any duty at all when the issue had not yet reached finality. Pending an appeal before the CESTAT the appellant deposited the entire amount under section 129E which is nothing but pre-deposit of the duty paid. Consequently, the interest, as applicable on pre-deposit, needs to be paid to the appellant. Appeal allowed - decided in favor of appellant.
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