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2013 (3) TMI 456 - AT - Central ExciseRecovery of Interest – Section 11AB. - Department is of the opinion that assessee while paying the differential amount of duty did not pay the interest on the same as under the provisions of section 11AB. According to the Assesse, the recovery of interest is subject to the limitation period prescribed under Section 11A and since there is no suppression of facts on part of the assessee, only normal limitation period of one year would be available. On the other hand, according to the Department, there is no limitation period for recovery of interest. The department placed reliance on the case based on Hon’ble Delhi High Court in the case of Kwality Ice Cream and Others v. Union of India [2012 (1) TMI 88 - Delhi High Court] the Apex Court held that it is only reasonable that period of limitation that applies to a claim for principal amount should also apply to the claim for interest thereon also. Held that:- Interest on a duty liability confirmed under Section 11A(2) or self-ascertained and paid under Section 11A(2B) is by automatic operation of Section 11AB and for recovery of such interest, no show cause notice is required and hence the limitation period prescribed under Section 11A is inapplicable. The interest under Section 11AB on a duty demand confirmed under Section 11A(2) or self-admitted/self-ascertained duty liability under Section 11A(2B) or for delay in payment of duty self-assessed under Rule 6 of Central Excise Rules, 2002 by the due date prescribed under Rule 8 ibid is “sum due to the Government”, which is recoverable under Section 11 of the Central Excise Act, 1944 and for which there is no limitation period. The show cause notices issued in these cases, even if invoking Section 11A, have to be treated as mere communication to the assessee for recovery of interest under Section 11.while the appeals filed by the Revenue are allowed, the appeals filed by the assessee are dismissed. All stay and Misc. applications also stand disposed of.
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