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TMI Blog2011 (3) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... CDR Per: Shri Justice R.M.S. Khandeparkar: Heard learned Advocate for the appellants and DR for the respondent. 2. This appeal arises from order dated 31.01.2006 passed by the Commissioner (Appeals) Meerut. By the impugned order, the appeal which was filed by the appellants against the order of the adjudicating authority has been dismissed. The Assistant Commissioner, Noida ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion during the period from April 2004 to December 2004. The appellants had crossed the small scale exemption limit of Rs. 3 crores during the financial year 2003-04 and, therefore, they had become ineligible for taking benefit of the notification granting exemption based on value of clearances for home consumption by SSI units during the financial year 2004-05. Scrutiny of ER-1 returns for the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia reported in 2006 (200) ELT 377 (Raj.), of the Tribunal in the matter of Sai Trading vs. CCE, Mumbai-II reported in 2009 (241) ELT 233 (Tri. Mumbai) submitted that the provisions of law in relation to the calculation of interest @ Rs. 1,000/- per day has been struck down by the Rajasthan High Court holding it to be ultra vires and department therefore could have demanded the duty only @ 24% per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8(3) to the extent it provides levy of interest @ Rs. 1,000/- which is higher as alternative to charge of interest @ 2% on the amount of duty means to be understood as 24% per annum on the amount of duty in default is ultra vires to Section 11AB of the Act and cannot be sustained and is held inoperative . Apparently, the authority below was not justified in confirming the demand of interest @ Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid rules and maximum limit thereunder is Rs. 5,000/- and not Rs. 20,000/-. 8. Therefore, the appeal succeeds. The impugned order to the extent it confirms the interest @ Rs. 1,000/- per day is hereby set aside and matter is remanded to the Commissioner to recalculate the interest bearing in mind the law applicable to the facts of the case and the decision of the Rajasthan High Court. As r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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