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2016 (1) TMI 694 - AT - Central ExciseDemand of interest - appellants cleared the goods without payment of duty - retrospectivity of liability - Held that:- The activity of producing refined edible oil was held to be not a process of manufacture by the Hon'ble Supreme Court in the case of M/s. Shyam Oil Cake Ltd (2004 (11) TMI 109 - SUPREME COURT OF INDIA ). Thereafter a new Chapter Note was inserted in Chapter 15 of CETA, 1985 vide Financial Bill, 2005 inserted on 28.02.2005 making the duty payable w.e.f. 1.3.2003. While brining forth the amendment, it provided for regularizing the duty already paid. The appellants discharged their duty liability on 13.05.2005. The argument on behalf of the Revenue that as the liability to pay duty is made retrospective, the respondents are liable to pay interest from 1.3.2003 onwards does not appear to be attractive. The liability to pay interest arises only when the amount becomes due. The amount falls due only after the insertion of the amendment. The respondents discharged their liability within the time limit. Though the product is made dutiable w.e.f. 1.3.2003, there was no liability to pay duty on that date, as the amendment occurred only on 28.02.2005. In our considered opinion, in the present case, there is no liability to pay interest. Also see Pushti Refineries (P) Ltd. Vs. CCE & ST, Bangalore [2014 (10) TMI 273 - CESTAT BANGALORE ] - Decided in favour of assessee.
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