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2016 (1) TMI 479 - HC - Central ExciseLevy of interest on differential duty - scope of Section 11AA before 11-5-2001 - Whether the CESTAT has not erred in law in holding that duty liability arises and commences from the date of the order of determination and not from the date of the actual liability especially when an order of determination always dates back to the actual date of liability?” - Held that:- So far as this case is concerned, the contention of the learned counsel for the Assessee is that, Section 11AA of the Act providing for charging of interest, came into effect only from 26.05.1995 (as per Finance Act, 1995) and as the tax liability of the Assessee was pertaining to the periods, 01.01.1994 to 31.01.1994 and 01.07.1994 to 30.12.1994, and that the amount of duty payable was remaining undetermined till the Order-in-Original was confirmed by the Order-in-Appeal, dated 26.12.2000 (which was communicated later) and that within three months, as the duty has been paid by the assessee, the question of payment of interest does not arise. The demand made for interest for the period from 26.08.1995 to 31.03.2001 has been rightly rejected by the Commissioner (Appeals) and as well as by the CESTAT, Chennai, is perfectly valid and is in accordance with the judgment rendered in Blue Star Limited's case [2009 (10) TMI 257 - BOMBAY HIGH COURT] - Decided against the revenue.
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