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2017 (3) TMI 412 - HC - Central ExciseInterest - section 11AA of the CEA, 1944 - petitioners contends that they were called upon by the Range Superintendent to pay interest allegedly payable under Section 11AA amounting to ₹ 5,98,025.66/. The petitioners pointed out that on receipt of the communication from the Range Superintendent, entire sum of duty was paid. Once that was paid, Section 11AA has no application and to the facts and circumstances of the present case - Held that: - Section 11AA could have been invoked only when the sum determined under Subsection (2) of Section 11A has not been paid within three months from the date of the determination. Once this is not the case, then, interest as claimed and by taking recourse to the above provision, was not recoverable - As per the general law and prevailing then, the proceedings for recovery of interest for wrongful withholding of the sum is independent of the action under the Central Excise Act, 1944. There is no provision in the Central Excise Act, 1944 and then prevailing, enabling recovery of such interest. For all these reasons, we hold that the demand for interest in terms of the Central Excise Act, 1944 was not tenable - petition allowed - decided in favor of petitioner.
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