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2017 (4) TMI 936 - AT - Central ExciseLiability of interest - short payment of tax - the actual cost of cement and steel is much higher during the said period compared to the price fixed by APSEB and the respondents - assessee claims that there was no demand for interest either in the show cause notice or in the duty confirmation orders and therefore they are not liable to pay interest - Held that: - there was no demand of interest in the show cause notice and there was no confirmation of liability to pay interest in the adjudication order also. As there was confusion in the law regarding the liability to pay interest, Section 11AA was introduced. The first proviso to this section speaks about liability to pay interest on all orders passed prior to 1995, if not paid within three months of the date of determination of duty. Explanation (1) and (2) explains how the date of determination of duty is to be reckoned. These explanations deal only with date of determination of duty when the demand is reduced or increased in further stage of appeal. It does not speak of a situation of remand, or a situation where the duty determined is maintained by the appellate forum. Since the appellate authority vide order dated 05.01.2001 has not modified, but maintained the order passed by the adjudicating authority, the liability to pay duty starts from the date of determination of duty which the date of the adjudication order i.e. 04.12.1996. The respondent having not paid the duty within three months from 04.12.1996, the respondent is liable to pay interest till the date of payment of duty - the respondent is liable to pay interest on ₹ 4,12,050/- from 04.12.1996 till date of payment of duty. In regard to the duty demand of ₹ 6,20,103/- the argument of the department that the date of determination of duty is the date of first Order-in-Original i.e. 30.04.1997 is not tenable. In this matter, the Tribunal had remanded the matter for denovo adjudication. Even though in denovo adjudication the very same amount was determined, it will not set the clock back regarding date of determination of duty. Remand by the Tribunal would mean that the order under challenge has lost it s significance - respondent is not liable to pay any interest in respect of demand of ₹ 6,20,103/-. Appeal allowed - decided partly in favor of Revenue.
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