TMI Blog2013 (12) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise duty for the period started from September, 2001 to February, 2002. Under the said circumstances, a show cause notice dated 8-10-2002 has been issued, wherein it has been specifically stated that the respondent is liable to pay duty of ₹ 3,48,182/- for the period mentioned supra and also liable to pay interest under Section 11AB of the Central Excise Act, 1944. On the basis of show cause notice dated 8-10-2002, Order-in-Original has been passed on 11-4-2003 and thereby confirmed the demand of interest made by the department. The Order-in-Original has been challenged by way of filing appeal before the Commissioner of Customs and Central Excise (Appeals), wherein an order has been passed on 13-7-2004 and in that order the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty from September, 2001 to February, 2002. Under the said circumstance, the show cause notice in question has been issued whereby a demand has been made in respect of Central Excise duty and also interest. 6. The learned Counsel appearing for the appellant has sparingly contended that admittedly the Central Excise duty has been paid by the respondent on 20-9-2002, even though the respondent is bound to pay the same for each and every month and since there is a belated payment, the respondent is liable to pay interest as per the provision contemplated under Section 11AB of the Central Excise Act, 1944 and the Appellate Tribunal without considering the provision of the said Section has erroneously found that the respondent has already pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for coming to a conclusion that there is a belated payment of tax on the part of the respondent. Since a belated payment of tax has been made on the part of the respondent, as per the provision of the said Section, the appellant is entitled to levy appropriate rate of interest. 11. In order to fortify the contention putforth on the side of the appellant, the decision in Commissioner of Central Excise, Pune v. SKF India Ltd. reported in 2009 (239) E.L.T. 385 (S.C.) is relied upon, wherein at paragraph No. 10, it is stated like thus : Sub-section (2B) of Section 11A provides that the assessee in default may, before the notice issued under sub-section (1) is served on him, make payment of the unpaid duty on the basis of his own ascert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment is in consonance with the provision of the said Section. Since the claim of interest made by the department is based upon the provision of law mentioned supra, it is needless to say that the order passed by the Appellate Tribunal with regard to interest is not legally and factually sustainable. Under the said circumstances the order passed by the Appellate Tribunal in Final Order No. 1165/2005, dated 11-7-2005 is liable to be set aside and the substantial question of law formulated in the present Civil Miscellaneous Appeal is decided in favour of the appellant. 13. In fine, this Civil Miscellaneous Appeal is allowed without costs and Final Order No. 1165/2005, dated 11-7-2005 passed by the Customs, Excise and Service Tax Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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