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2009 (1) TMI 384 - CESTAT, BANGALOREWhether SCN required for recovery of interest on erroneously granted rebate – Assessee voluntarily paid back erroneously granted rebate - A combined reading of Section 11A(2B) and Section 11AB(1) makes it abundantly clear that even when the assessee voluntarily pays the erroneous sanctioned refund, he is liable to pay interest in terms of Explanation 2 to Section 11A(2B).. - The details show that the erroneously sanctioned rebate was with the assessee for a period ranging from 326 days to 427 days. The argument of the assessee that they are not liable for interest for the reason that no show cause notice was issued, does not stand to reason in the light of the legal provisions. In other words, the assessee is duty bound to pay the interest without waiting for any show cause notice. - Hence, we dismiss the appeal
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