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2011 (10) TMI 83 - AT - Central ExciseClearance of inputs and capital goods on loan basis to another unit of the assessee - scope of SCN - held that:- In the show cause notice dated 18/10/2004 there is no proposal for recovery of duty under Section 11A(1) of the Central Excise Act, 1944 and the proposal was restricted to imposition of penalty under Rule 173Q of Central Excise Rules, 1944 read with Rule 25 of the Central Excise (No.2) Rules,2000 and Section 11AC of the Central Excise Act, 1944. The show cause notice also proposed recovery of interest at appropriate rates under Section 11AB. However, while passing the order dated 23/12/2005 the adjudicating authority confirmed a duty demand of Rs. 1,53,394/- under Section 11A of the Act and appropriated the duty amount already paid. Thus, it is clear that the adjudicating authority has traversed beyond the show cause notice. In the instant case inasmuch as the appellant had discharged the duty liability on his own ascertainment on 05/01/2002, the question of issue of a notice under Section 11A(1) did not arise. - in respect of the demand which arising from 11/05/2001, interest liability accrue under Section 11AB and even in respect of demands arising prior to 11/05/2001 interest liability will accrue if the payments have been made on or after 11/05/2001. Thus, the demand for interest at the appropriate rates under Section 11AB is sustainable for the period from 11/05/2001 onwards - Levy of interest confirmed - levy of penalty u/s 11AC dropped.
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