The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) Ahmedabad bench presided by Mr. Ramesh Nair, Member (Judicial) has held that no adjustment of demand from sanctioned claim during the pendency of demand case before Tribunal.
During assessment proceedings of the appellant, Bayer Vapi Pvt Ltd, the revenue appropriates the demand ofRs.4,50,572/- towards penalty and interest corresponding to a confirmed demand from the sanctioned rebate claim during the period the demand case was pending before the tribunal.
The counsel appearing on behalf of the appellant submits that in the demand case, the appellant had deposited the entire duty amount and only penalty and interest were left out however, the appellant had preferred an appeal before the CESTAT which was admitted and pending therefore, at that stage the demand could not have been appropriated from the sanctioned rebate claim.
The Tribunal observed that from the Board Circular No. 984/8/2014-CX regarding recovery of dues when the appeal is pending, it is clear that against the adjudged dues, the appellant, for filing an appeal, is required to pay only 7.5% or 10%. On payment of such amount, the entire remaining amount stand stayed,and out of the remaining amount no recovery can be made.
The Tribunal has held that the impugned order is not sustainable and allowed that appeal.
Adv. S. Suriyanarayanan and G. Kirupanandan appeared on behalf of the appellant and respondent respectively.
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