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2009 (11) TMI 293 - HC - Central ExcisePenalty- the assessee is engaged in manufacture of clearance of chemicals like Sodium Cynate, Cuprous Chloride, B.D.S.A., etc. falling under Chapter Head Nos. 28 & 29 of the Schedule to the Central Excise Tariff Act, 1985. A show-cause notice was issued for the demand of tax and penalty. Order in original was passed by the Additional Commissioner, Ahmedabad on 30-9-2002 demanding a duty of ₹ 5,95,500!- on finished goods valued at ₹ 43,04,935/- from the assessee and also demanding the central excise duty of P 97,063/- involved on the inputs under Proviso to Section11A (1) of the Act. The Additional Commissioner has also imposed penalty of Rs.,96,563/- under Section 11AC read with Rule 173Q of the erstwhile Central Excise Rules, 1944 and levied interest at the prescribed rate under Section 11AA of the Act. Commissioner (Appeals), confirmed the demand, penalty and interest raised and/or charged by the Additional Commissioner. Being further aggrieved by the decision of the Commissioner (Appeals), the assessee preferred an appeal before the CESTAT. Tribunal has confirmed the levy of penalty and set aside the order with regard to charging of interest under Section 11 of the Act. Held that- Since the demand relates to the period subsequent to 28-9-1996 and the earlier provision of Section 115 was not considered by the Tribunal, the impugned order of the Tribunal is set aside on this point and remand the matter to the Adjudicating Authority to decide the whole issue with regard to charging of interest keeping in mind the provisions contained in unamended Section 11AB of the Act. This appeal filed by the revenue is accordingly answered.
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