2005 (8) TMI 199

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..... appeal arising from the Order-in-Appeal No. 70/2003 (V-I) CE dated 11-7-2003 is as to whether the Department can confirm interest without issue of show cause notice. The appellants had given a Bank Guarantee for the amount. In terms of the Hon'ble A.P. High Court order dated 30-7-1999 dismissing the Writ Petition filed by the appellants, the Bank Guarantee was enchased by the Department. The Depar .....

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..... y the Apex Court in the case of U.O.I. v. Madhumillan Syntex Pvt. Ltd. [1988 (35) E.L.T. 349 (S.C.)]. Therefore without going into the merits of the case, the demand letter dated 23-11-2000 of the Assistant Commissioner asking the assessee to pay the interest on the amount towards the Bank Guarantee encashed by the Revenue is not sustainable in law. The appeal is allowed in terms of the Apex Court .....

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