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2014 (10) TMI 22 - AT - Central ExciseDelayed payment of duty - Rule 8(3) of central excise rules, 2002 - department has calculated interest as per Rule 8 (3) at the rate of ₹ 1000/- per day which is equivalent to the duty determined under Rule 8(3) - Held that:- Division Bench of this Tribunal in the case of Elastolan Engineers Pvt. Ltd. (2007 (5) TMI 431 - CESTAT, KOLKATA) has dealt with the similar issue and held that assessees are not liable to pay interest in excess of the amount notified under Section 11AB for the delayed period of payment of duty. This Bench of the Tribunal in the case of Kanagadurga Clothers Pvt. Ltd. (2010 (1) TMI 352 - CESTAT, CHENNAI), taking into consideration the ratio laid down in the cases of Elastolan Engineers Pvt. Ltd. (supra) and Lucid Colloids Ltd. (2005 (8) TMI 134 - HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR) has held that interest on delayed payment would be payable as per Section 11AB. - Appellant is liable for payment of interest on the delayed payment for the disputed period as provided under Section 11AB of Central Excise Act i.e. 13 % per annum. Accordingly, the impugned order is modified to the extent of charging interest @ 13% per annum as provided under Section 11AB and I uphold the penalty. - Decided partly in favor of assessee.
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