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2013 (10) TMI 617 - CESTAT BANGALOREMODVAT credit – Determination of Duty under Rule 57-I - Appellant contended that there was no determination of the amount payable under Rule 57I (1)(iii) - the question of payment of interest does not arise – Held that:- Rule 57-I (1)(ii) envisages a situation where demand is to be raised by the department within six months or within five years as the case may and sub-rule (1)(iii) provides that the proper officer to determine the liability - Sub-rule (2) provides for a situation where a demand is made, the assessee pays with interest and the matter ends there. Whether the demand is confirmed after quantification under sub-rule (1)(iii) or the amount is paid under sub-rule (2), the assessee is required to pay interest as per the provisions of sub-rule (3) read with Section 11AA of the Act - Where an amount is determined under sub-rule (1)(iii) or the amount demanded has been paid under sub-rule (3), the interest is to be paid - even if the duty amount was paid, the provisions of sub-rules (1) & (3) of Rule 57I would be attracted - in earlier proceedings, the appellant had challenged the liability before the Tribunal and the Tribunal dismissed the appeal - The consideration of the statutory provisions reveals that once the duty amount is paid, the interest becomes payable and whether duty is determined under Rule 57-I (iii) or it is paid under Rule 57I (2), the interest liability would be attracted – Decided against Assessee.
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