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2016 (12) TMI 853 - CESTAT NEW DELHIDemand of interest - reversal of credit on different dates - interest on such credits from the dates of availing till the dates of reversal - time bar - Held that: - The main contention of the appellant is that the Show Cause Notice issued to demand interest is barred by limitation inasmuch as it has been issued after the period of 1 year prescribed for demand of duty under Section11A. Perusal of Section 11 A, as it stood at relevant time, reveals that it did not specifically provide for recovery of interest. In the case laws cited by the appellant EMCO LTD. vs. Commissioner of C. EX., Mumbai [2011 (6) TMI 567 - CESTAT, MUMBAI], it has been held that the period of limitation that applies to a claim for the principal amount would also apply to the claim of interest there on. Such view which stands approved by the Hon’ble Supreme Court, also may be applied to the present case. I find on applying such a time limit that the demand for interest is hit by time bar as claimed by the appellant. Consequently, the demand raised for interest is to be set aside and the appeal succeeds. Appeal allowed - decided in favor of appellant-assessee.
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