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2017 (11) TMI 707 - AT - Central ExcisePenalty - Liability of interest - relevant date - interest chargeable prior to 11/05/2001, i.e. before the amendment of Section 11AB - whether in case of short payment of duty demand due to difference in calculation of value under the Valuation Rules, 2000, the appellants are liable for payment of interest and penalty? - Held that: - identical issue decided in the appellant own case NRB Bearings Ltd. Versus CCE, Mumbai-III [2017 (11) TMI 335 - CESTAT MUMBAI], where it was held that the interest u/s 11AB is inevitable wherever there is a delay in payment of duty. As regards the demand of interest, the interest before 11/05/2001 was chargeable only when the non-payment of duty is due to the reason of suppression of fact mis-declaration, fraud, collision, etc. In the present case admittedly there is no such charge on the appellant, therefore the interest for the period prior to 11/05/2001 is not chargeable. The adjudicating authority should re-calculate the interest and recover the same only for the period from 11/05/2001 till the date of payment of the differential duty - appeal allowed in part and part matter allowed by way of remand.
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