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TMI Blog2017 (2) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... Per Ramesh Nair The issue involved in the present case is that whether interest under Section 11AA is payable by the appellant particularly in the fact that in another proceedings the demand of interest under Section 11AB and penalty under Section 11AC was dropped for the same period. 2. The fact of the case is that a show-cause notice was issued demanding duty on Dies as well as on Forging. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equently, the Range Superintendent vide his letter dated 28.2.2003 demanded the interest under Section 11AA of the Act for the period prior to 28.9.1996. The appellant vide letter dated 28.11.2002 refused to pay the interest and stated that the recovery of interest under Section 11AA through letter of the Superintendent is without authority of law. Subsequently, the Range Superintendent vide lette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of interest prior to 28.9.1996. Accordingly, a fresh show-cause notice bearing No. 52/P-VIII/NRR-I/04 dated 18.3.2005 was issued , wherein demand of interest of Rs. 79,887/- was proposed under Section 11AA and also proposed to impose the penalty under Rule 173Q of the Central Excise Rules, 1944 and under Rule 25(1) of the Central Excise Rules, 2002. The adjudicating authority vide Order-in-Orig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fully considered the submissions made by the learned AR and perused the records. We find that the limited issue is to be decided is whether the interest under Section 11AA was recoverable particularly when in the earlier show-cause notice, the same interest was demanded under Section 11AB and the same was dropped for a part period as Section 11AB was not existing prior to 28.9.1996. We find that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the demand of interest is upheld. 6. As regards imposition of penalty of Rs. 20,000/- under Rule 25(1) of the Central Excise Rules, 2002, we find that the appellant has contested the matter of interest on the legal ground and they had the bona fide belief that the interest is not chargeable once the proceedings for the interest for the same period has been dropped in the earlier proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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