2005 (8) TMI 199

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..... The short question that arises for consideration in this 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 .....

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..... interest is not as per law. Similar view was expressed by 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 .....

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