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2017 (7) TMI 718 - HC - Central ExciseClassification of goods - AED - Embroidered Grey Fabrics - the central excise department alleged that the appellant had incorrectly classified the product under chapter heading No. 5804.11 as “Lace/Motif of Cotton” instead of chapter heading No. 5804.19 as “Embroidery”. The department was of the view that the appellant is liable to pay AED (TTA) @ 15% instead of 8% w.e.f. 20/08/1998 onwards - demand of interest - Held that: - Sections 11AC and 11AB of Excise Act have not been incorporated in the ADE (T&TA) Act. The counsel appearing for the Department/Respondent though endeavoured unable to pinpoint the incorporation of these Sections. In absence of any statutory provisions, it is settled that any demand of penalty (11AC) and/or interest (11AB) would be without jurisdiction and authority of law. It is settled that a clear statutory mandate requires for authority to collect and/or raise demand of any tax and penalty and/or interest. In the absence of such provision, any demand in the present case, of penalty/interest is unauthorised, impermissible and unsustainable. The Department itself, therefore, accepted the position of law and even set aside such imposition under Section 11AC by Additional Commissioner by order dated 29.03.2010. In view of above, the order passed by the Assistant Commissioner dated 26.12.2012 whereby order to refund the amount in view of above, but directed to appropriate the interest to be paid by the assessee (Appellant) under Section 11 of the Excise Act, is unsustainable - The order of recovery of interest at appropriate rate for delayed payment by invoking the provision of Section 11AB of Excise Act, therefore, is unjust, unclaimable as it is illegal. In view of above reasons, the confirmation of the same by the impugned order dated 27.09.2013 is also unsustainable and is required to be set aside. Appeal allowed - decided in favor of appellant.
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