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2015 (11) TMI 249 - AT - Central ExciseDenial of a refund of the interest recovered by the revenue - delayed payment of duty which was later found as not sustainable - Held that:- if at all, there is any short payment of duty, the mandate of law is that a show cause notice is required to be issued as per section 11 AC of the Act which Department has failed to do so. Therefore, without issuance of the show cause notice, demand of duty cannot be confirmed against the appellant and consequently be recovered from the appellant. In case when demand is not sustainable question of payment of interest does not arise. In this case demand of interest has been confirmed against the appellant for delayed payment without issuance of the show cause notice. Therefore, demand of interest is not sustainable. Consequently, the interest recovered from the appellant is to be refunded. - no show cause notice has been issued to the appellant. Therefore, adjustment of demand of interest is not permissible. In these terms, the impugned order deserves no merits. Hence same is set aside. - Decided in favour of assessee.
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