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2015 (9) TMI 92 - AT - Central ExciseDemand of interest u/s 11AB on differential duty - Extended period of limitation - Held that:- The relevant date for demanding interest will have to be mutatis mutandis, one year from the date of payment of interest made under Section 11A of the Central Excise Act, 1944, because on the date of payment of duty only the exact amount of interest, from the date of clearances to the date of payment of differential duty, can be calculated for the purpose of issuing a quantified demand on account of interest. The demand for interest was thus issued within a period of one year. Non-payment of interest on account of Revenue Neutrality - Held that:- none of these two High Court orders were placed before the cases relied upon by the learned Authorised Representative. Jurisdictional Gujarat High Court held in CCE &C, Vadodara-II Vs Indeos ABS Ltd (2010 (3) TMI 656 - GUJARAT HIGH COURT) that when supplies are made to the sister concerns then demand cannot be upheld on Revenue Neutrality which means both differential duty and interest cannot be demanded. Further, in view of Hon'ble Bombay High Courts order in the case of CCE Pune II Vs Siddheshwar Textile Mills Pvt.Ltd. (2014 (11) TMI 621 - BOMBAY HIGH COURT) when duty demand itself is not sustainable on Revenue Neutrality, it will not be correct to demand interest on differential duty voluntarily paid by the Appellant. - Decided in favour of assessee.
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