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2008 (12) TMI 200 - AT - Central ExciseInterest – delayed payment of duty – effective date - For delay in making good the duty short paid for the clearances, the assessee also paid the interest due of Rs. 5,23,359/- with effect from 11.5.01 – For duty short paid for the clearances prior to 11.5.01, the department determined the applicable interest due from the assessee as Rs. 3,51,303/-. – held that - Provisions of Section 11AB and Section 11A(2B) came into force w.e.f. 11-5-01. Therefore interest was payable for delay in payment of duty short paid on own ascertainment by the assessee before issue of Show Cause Notice by the department. As per the provisions of Section 11AB as it existed prior to 11-5-01, interest was not payable when short payment of duty had not occurred owing to fraud, collusion, willful mis-statement or suppression of facts or contravention of any other provisions of the Act or Rules with intent to evade payment of duty was determined under sub-section 2 of Section 11A. Therefore, the demand of interest of Rs. 3,51,303/- relating to the period June, 2000 to April, 2001 is held to be unsustainable.
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