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2006 (11) TMI 434 - CESTAT, NEW DELHIDemand of interest - Period of Limitation - different duty on sale of goods - impose penalty - HELD THAT:- All the recoveries of sums due to the Government under the provisions of the Act and the rules could be affected u/s 11. Section 11A is a specific provision for recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded and the time-limit is fixed in the context of such recovery and not in the context of other recoveries which could be made u/s 11 of the Act. Therefore, the notice to pay interest under Section 11AB cannot be tested on the anvil of the period of limitation prescribed u/s 11A in the context of the show cause notice for recovery of duty, etc. There is no period of limitation prescribed for effecting recovery of interest u/s 11AB, nor is there any period of limitation prescribed for exercising the power to recover the sums due to the Government u/s 11 of the Act. Therefore, the learned Commissioner (Appeals) was clearly wrong in law when he set aside the interest liability of the respondent for the period from July, 2001 to June, 2002, which period was governed by the amended provisions of sub-section (2B), read with explanation 2 thereto, of Section 11A, which was brought into force with effect from 11-5-2001. Therefore, the demand of interest for the said period from July, 2001 to June, 2002 is required to be confirmed and the impugned order of the Commissioner (Appeals) is set aside to that extent, and the order-in-original will stand restored to that extent. The appeal is accordingly allowed with no order as to costs.
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