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2017 (2) TMI 1167 - AT - Central ExciseInterest u/s 11AA - whether the interest under Section 11AA was recoverable particularly when in the earlier show-cause notice, the same interest was demanded under Section 11AB and the same was dropped for a part period as Section 11AB was not existing prior to 28.9.1996? Held that: - before 28.9.1996, the interest was chargeable u/s 11AA. Though initially it was proposed u/s 11AB but subsequently by issuance of fresh SCN, the interest was demanded u/s 11AA. There is no restriction that as regards recovery of interest once the SCN was issued, another SCN cannot be issued. Limitation does not apply in case of recovery of interest. Section 11AA provides for charging the interest - the demand of interest upheld. Imposition of penalty u/r 25(1) of the CER, 2002 - Held that: - appellant had the bona fide belief that the interest is not chargeable once the proceedings for the interest for the same period has been dropped in the earlier proceedings - the imposition of penalty of ₹ 20,000/- is not correct. Appeal disposed off - decided partly in favor of appellant.
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