Gupta Pigments and Chemicals Pvt. Vs. Commr. of C. Ex. - Court Judgment

Excerpt:
1. shri rupesh kumar, learned advocate submitted that m/s. gupta pigments and chemicals pvt. ltd. has deposited the entire amount of duty of rs. 17,74,732/- and entire amount of penalty of rs. 18,81,320 + rs. one lakh; that the department is still insisting for payment of interest on the amount of duty which may be stayed. ms. neeta lal butalia, learned senior departmental representative, on the other hand, submitted that under the provisions of section 35f of central excise act only the pre-deposit of duty and penalty is required and the tribunal may stay the recovery of only the duty and penalty and not of the interest.2. we have considered the submissions of both the sides. section 35f of the act only speaks of pre-deposit of duty and penalty by an appellant.proviso to section 35f empowers the tribunal to dispense with such deposit if it is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to the appellants. the law is silent about the interest. accordingly, the tribunal is not empowered to pass any order about the pre-deposit or dispensing with the pre-deposit of the interest amount. as in the present matter entire duty and penalty stands deposit, the stay petition is infructuous and is dismissed as such. the appeal is posted for regular hearing on 28-3-2005.

Judgment:
1. Shri Rupesh Kumar, learned Advocate submitted that M/s. Gupta Pigments and Chemicals Pvt. Ltd. has deposited the entire amount of duty of Rs. 17,74,732/- and entire amount of penalty of Rs. 18,81,320 + Rs. One lakh; that the department is still insisting for payment of interest on the amount of duty which may be stayed. Ms. Neeta Lal Butalia, learned Senior Departmental Representative, on the other hand, submitted that under the provisions of Section 35F of Central Excise Act only the pre-deposit of duty and penalty is required and the Tribunal may stay the recovery of only the duty and penalty and not of the interest.

2. We have considered the submissions of both the sides. Section 35F of the Act only speaks of pre-deposit of duty and penalty by an Appellant.

Proviso to Section 35F empowers the Tribunal to dispense with such deposit if it is of the opinion that the deposit of duty demanded or penalty levied would cause undue hardship to the Appellants. The law is silent about the interest. Accordingly, the Tribunal is not empowered to pass any order about the pre-deposit or dispensing with the pre-deposit of the interest amount. As in the present matter entire duty and penalty stands deposit, the stay petition is infructuous and is dismissed as such. The appeal is posted for regular hearing on 28-3-2005.