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2015 (12) TMI 937 - AT - Central ExciseDemand of interest u/s 11AB and penalty u/s 11AC - Short payment of duty - Held that:- Alleged short payment cannot be said to be attributable to any fraud, wilful misstatement, suppression of facts or deliberate violation of the provisions of the Central Excise Act, 1944 or of the Rules made there under with intent to evade payment of duty. During the period prior to 11.05.2001, the levy of interest under section 11AB was linked with the short levy, non-payment or erroneous refund being on account of fraud, wilful misstatement suppression of facts etc. Since these elements are not present in this case and since for this reason only, the Commissioner (Appeals) has set aside the penalty under section 11AC, there would not be any interest liability in this case, as the alleged short payment is in respect of the clearances made prior to 11.05.2001. Moreover, since the elements for invoking longer limitation period under proviso to Section 11A (1) are not there, in any case, the interest demand made after expiry of one year from the relevant date is time barred, in view of the Hon’ble Delhi High Court in the case of Hindustan Insecticides Ltd. (2013 (8) TMI 225 - DELHI HIGH COURT). The impugned order is, therefore, not sustainable. - Decided in favour of assessee.
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