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2015 (7) TMI 1104 - AT - Central ExciseLiability of interest - Invokation of second proviso to Rule 9 read with Section 11AA of the Central Excise Act, 1944 - Delay in payment of duty - factory was not in operation during the period - duty abatement was allowed by the department - Held that:- since the production activity was suspended on 01.06.2013 and continued till 22.06.2013, there was no occasion for payment of duty in advance on 05.06.2013 for the whole month of June' 2013, for the reason that the appellant might not have aware as to how long the factory will remain un-operational. On resumption of the production activity on 23.06.2013, since the appellant promptly deposited the duty on the very next day, i.e. on 24.06.2013, hence, there was no delay in payment of duty and therefore the interest liability cannot be fastened on the appellant by the authorities below in view of the principle decided by the Hon’ble Supreme Court in the case of Pratibha Processors vs UOI [1996 (10) TMI 88 - SUPREME COURT OF INDIA], wherein it has been held that the interest is compensatory in character and is imposed on the assessee who has withheld payment of any tax as and when it is due and payable. The impugned order is set aside. - Decided in favour of appellant
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