By TIOL News Service

MUMBAI, JUNE 15, 2016: THIS appeal filed by HPCL against the Order-in-Appeal dated 11.02.2016 has been posted for maintainability before the CESTAT.

A demand of interest has been confirmed on the appellant. Apart from order of recovery of interest of Rs.40,81,365/-, a penalty of Rs.40,81,365/- under section 11ACof CEA, 1944 has also been imposed.

The appellants have argued that section 35F does not require payment of any pre-deposit in case of interest.

The AR argued that pre-deposit is required in this case, as apart from interest, penalty has also been imposed against the appellant.

The Bench extracted Section 35F of the CEA, 1944 and observed -

"4.1 I find that in the instant case apart from interest, penalty under section 11AC has also been imposed. The appellants have challenged both interest as well as penalty. Section 35F specifically lays down that pre-deposit under section 35F is required when penalty has been disputed. In the instant case, there is a specific dispute of penalty, therefore, provisions of section 35F have to be invoked."

The Bench gave the appellant four weeks time to comply with the provisions of section 35F of the CEA, 1944 failing which, it was informed, the appeal would be dismissed as not maintainable.

(See 2016-TIOL-1430-CESTAT-MUM)