2007 (12) TMI 80 - AT - Central Excise

Whether the appellants are liable to pay interest @ of 24% p.a. as per not.. 42/01 or 15% p.a. which is the rate of interest prescribed u/s11AB - rate of interest prescribed under Sec.11AB would prevail over the rate of interest prescribed under the Notification - amendment carried out to Notification 42/01 by issue of Notification 20/07 by which rate of interest under Sec. 11AB of the Act has been substituted for rate of 24% interest in Notification 42/01 shall have retrospective effect

Summary

The dispute in the appeal was about the interest rate applicable to the appellants - 24% per annum as per Notification No. 42/2001 or 15% per annum under Sec. 11AB of the Central Excise Act. The Tribunal ruled in favor of the appellants, stating that the rate under Sec. 11AB prevails and the amendment to Notification No. 42/01 has retrospective effect based on legal precedents. The impugned order was set aside, and the appeal was allowed.