2008 (12) TMI 200

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... During the period July, 2000 to March, 2004, the appellants had made clearances of excisable goods availing abatement of 2.5% towards cash discount which was not eventually allowed to their buyers or was allowed to a lesser extent. The assessee ascertained on their own, the duty due on the discounts not passed on to the buyers and remitted the same to the Government. For delay in making good the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sustained demand for the interest for the period prior to 11-5-01, on the above reasoning. 2. The Ld. Counsel for the appellants rely on the provisions contained in Section 11AB of the act as it existed prior to 11-5-01 and submits that during this period the statute provided for demanding interest from an assessee only when duty of excise was not levied or paid or was short levied or short paid .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d consequently no interest was also not payable. 3. Ld. JDR reiterates the reasoning contained in the impugned order. He also relies on a judgment of the apex court in Commissioner of Trade Tax, Lucknow v. Kanhai Ram Thekedar reported in 2005 (185) E.L.T. 3 (S.C). 4. I have carefully considered the facts of the case and the rival submissions. I find that the appellants paid interest due for dela .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2), or sub-section (2B), of section 11A till the date of payment of such duty:" Section 11A(2B) referred in Section 11AB reads as follows. "(2B) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously ref .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n short payment of duty had not occurred owing to fraud, collusion, willful mis-statement or suppression of facts or contravention of any other provisions of the Act or Rules with intent to evade payment of duty was determined under sub-section 2 of Section 11A. Therefore, the demand of interest of Rs. 3,51,303/- relating to the period June, 2000 to April, 2001 is held to be unsustainable. In view .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X