{"id":7727,"date":"2026-01-23T16:35:36","date_gmt":"2026-01-23T11:05:36","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=7727"},"modified":"2026-01-23T16:35:36","modified_gmt":"2026-01-23T11:05:36","slug":"duty-demand-set-aside-review-of-interest-penalty-invalid-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/duty-demand-set-aside-review-of-interest-penalty-invalid-hc","title":{"rendered":"Duty Demand Set Aside; Review Of Interest Penalty Invalid | HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/excise-service-tax\/101010000000414972\/if-duty-demand-itself-set-aside-review-of-order-for-setting-aside-interestpenalty-misconceived-if-no-notice-issued-hc\"><span class=\"TextRun SCXW89043497 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW89043497 BCX0\" data-ccp-parastyle=\"Body-All Documents\" data-ccp-parastyle-defn=\"{&quot;ObjectId&quot;:&quot;f54e3151-7552-5563-bc14-dd1598e94375|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[469775450,&quot;Body-All Documents&quot;,201340122,&quot;2&quot;,134234082,&quot;true&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocuments&quot;,335572020,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777844,&quot;Book Antiqua&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,335559740,&quot;280&quot;,201341983,&quot;1&quot;,335559739,&quot;0&quot;,335551550,&quot;6&quot;,335551620,&quot;6&quot;,469777929,&quot;Body-All Documents Char&quot;,201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777843,&quot;Calibri&quot;,201341986,&quot;1&quot;,268442635,&quot;24&quot;]}\" data-ccp-parastyle-linked-defn=\"{&quot;ObjectId&quot;:&quot;d1cb5994-2cf1-5883-8af4-faa182bd9769|1&quot;,&quot;ClassId&quot;:1073872969,&quot;Properties&quot;:[201342446,&quot;1&quot;,201342447,&quot;5&quot;,201342448,&quot;1&quot;,201342449,&quot;1&quot;,469777841,&quot;Book Antiqua&quot;,469777842,&quot;Times New Roman&quot;,469777843,&quot;Calibri&quot;,469777844,&quot;Book Antiqua&quot;,201341986,&quot;1&quot;,469769226,&quot;Book Antiqua,Times New Roman&quot;,268442635,&quot;24&quot;,469775450,&quot;Body-All Documents Char&quot;,201340122,&quot;1&quot;,134233614,&quot;true&quot;,469778129,&quot;Body-AllDocumentsChar&quot;,335572020,&quot;1&quot;,134231262,&quot;true&quot;,335551500,&quot;0&quot;,134233111,&quot;true&quot;,469777929,&quot;Body-All Documents&quot;,469778324,&quot;Default Paragraph Font&quot;]}\">Patanjali Foods Ltd. vs. Commissioner of Central Excise and Service Tax, Mangalore (2026) 38 Centax 75 (Kar.)<\/span><\/span><\/a><span class=\"EOP SCXW89043497 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:280}\">\u00a0<\/span><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>S.G. Pandit<\/strong> and<strong> C.M. Poonacha,<\/strong> JJ.<\/li>\n<li><strong> S\/Shri Rajesh Rawal<\/strong> for <strong>Chandrashekar Reddy K.P<\/strong>., Advs., for the Petitioner.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The assessee was subjected to a demand of excise duty along with interest and penalty under the Central Excise Act, 1944, pursuant to adjudication proceedings. Subsequently, insolvency proceedings were initiated against the assessee, culminating in approval of a resolution plan. In appeal, the High Court held that the duty demand confirmed by the adjudication order stood extinguished on account of the insolvency resolution. Thereafter, the assessee filed a review petition contending that while the duty demand had been set aside, the interest and penalty levied pursuant thereto had not been expressly quashed. It was further contended that the appeal had been allowed only with respect to the demand confirmed in the adjudication order and not the higher demand proposed in the show cause notice, and that refund of the amount already deposited pursuant to the show cause notice had not been considered. The matter was accordingly placed before the High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The High Court held that the review petition was misconceived. The Court observed that, admittedly, no notice had been issued by the Departmental authorities to the assessee claiming interest or penalty in respect of the demand, and therefore the contention seeking review on that ground was untenable. With respect to the plea regarding refund, the Court held that the issue had already been considered in the order sought to be reviewed while dealing with the Department\u2019s contention that the amount deposited by the assessee was not liable to be refunded. It was held that the assessee was attempting to re-argue the matter on merits, which was beyond the scope of review jurisdiction under Section 114 of the Code of Civil Procedure, 1908. Accordingly, the review petition was dismissed.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=(2025)%2036%20Centax%2026%20(Kar.)&amp;itemType=AP\">Patanjali Foods Ltd. v. Commissioner<\/a> \u2014 (2025) 36 Centax 26 (Kar.) \u2014 Affirmed [Paras 1, 5]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Patanjali Foods Ltd. vs. Commissioner of Central Excise and Service&hellip;<\/p>\n","protected":false},"author":16,"featured_media":7732,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49,51,63],"tags":[],"class_list":["post-7727","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-excise-service-tax","category-news-excise-service-tax","category-est-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Duty Demand Set Aside; Review Of Interest Penalty Invalid | HC<\/title>\n<meta name=\"description\" content=\"High Court holds that review of order setting aside interest and penalty is misconceived when duty demand itself is set aside and no notice issued.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.centaxonline.com\/blog\/duty-demand-set-aside-review-of-interest-penalty-invalid-hc\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Duty Demand Set Aside; 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