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2022 (6) TMI 428 - Central Excise
Head Note / Extract:
Maintainability of appeal - requirement of mandatory pre-deposit - appellate has deposited entire amount of duty (100% of duty) instead of 7.5% / 10% - Only demand of penalty and interest was left over - Appropriating demand and penalty with sanctioned rebate amount towards pre-deposit during pendency of appeal - HELD THAT:- From the section 35F, the appellant was required to pay only 10% (7,5% at Commissioner Appellate stage & 2.5% at CESTAT appellate stage). When this appropriation was made on 12.09.14, the appellant not only paid this 7.5% or 10% as the case may be, but have paid the entire duty amount. The appropriation was made towards the penalty and interest only. Regarding recovery of dues when the appeal is pending, the Board has issued a Circular Circular No. 984/8/2014-CX., dated 16-9-2014 - From the circular, it is clear that against the adjudged dues, the appellant, for filing an appeal, is required to pay only 7.5% or 10% as the case may be. On payment of such amount, entire remaining amount stand stayed if this be so, out of the remaining amount no recovery can be made. As stated above, the appellant not only paid 7.5%/10% but the entire duty therefore, in terms of Section 35F read with Board Circular Circular No. 984/8/2014-CX., dated 16-9-2014, the revenue should not have recovered the amount of penalty and interest by way of appropriation from the sanctioned rebate claim. The appellant’s demand case got settled under ‘SVLDRS-2019’, for this reason also, no amount shall be allowed to be appropriated. Appeal allowed - decided in favor of appellant.