CESTAT - Stay - What about Balance of Duty?
IN a recent case before the CESTAT, the appeal was against a demand of Service Tax of Rs.1 ,29,44,543 /- with interest and penalty. The Tribunal directed the appellant to make a pre-deposit of Rs. 60 Lakhs . Subject to compliance with this pre-deposit, realization of penalty as well as interest shall be stayed during pendency of appeal. Now penalty and interest are waived, but what about the balance of duty? Normally when the Tribunal orders stay, it clearly mentions that the ‘balance of duty' is waived or the ‘Department is barred from recovering the balance of duty'. In this case, there is no such order and technically the Department can recover the balance of duty also!
We will bring you this order tomorrow.