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2014 (8) TMI 406 - CESTAT CHENNAIInterest demand - Commissioner (Appeal) set aside the demand - Tribunal confirmed the demand - Date of commencement of interest charges - Whether in the facts and circumstances of the case, demand of interest under Section 11AA of the Act, 1944 would be commenced after the three months from Order-in-Original or after three months from Tribunal Final Order - non-payment of Additional Duty of Excise - Held that:- In pursuance of Section 35A(3) of the Act, 1944, the Commissioner (Appeals) is empowered confirming, modifying or annulling the decision or order of demand of duty as determined under Section 11A(2) of the Act, 1944. The word "annal" as per The Chambers Dictionary, 12th Edition means "to make null, to reduce to nothing, to abolish". The word "null" as per Dictionary means "of no legal force, void, invalid, having no significance, amounting to nothing, non-existent. In case, the Commissioner (Appeals) is modifying the demand of duty as determined, the interest is payable as per Explanation I or II of Section 11AA. But, if the Commissioner (Appeals) is annulling the order, demand of duty is non-existent. Division Bench of the Tribunal in the case of LUCAS TVS Ltd. (2009 (12) TMI 828 - CESTAT CHENNAI) rejected the appeal filed by the Revenue on the same issue following the decision of Blue Star Ltd. (2009 (10) TMI 257 - BOMBAY HIGH COURT). In that case, the demands were set aside by the Commissioner (Appeals) vide order dated 20.06.1995. The Tribunal by order dated 24.01.1997 set aside the Order-in-Appeal and remanded the matter to Commissioner (Appeals). The demand was reconfirmed by the Commissioner (Appeals) vide order dated 26.12.2000 - Commissioner (Appeals) set aside the demand by Order-in-Appeal dated 12.05.1998. The Tribunal by final order dated 30 th May, 2003 redetermined the demand and modified the order of the Commissioner (Appeals). Appellants are liable to pay interest, if any, after three months from the date of the Tribunal's final order dated 30.05.2003 in terms of Section 11AA of the Central Excise Act, 1944 - Decided in favor of assessee.
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