Appellants' Liability Dispute Resolved: Interest Payment Post-Amendment

The appellants disputed their liability to pay interest under Section 11AB of the Act, arguing no suppression of facts and timely notice issuance. The adjudicating authority found no intent to evade duty but held them liable for interest post-amendment, irrespective of fraud proof. Appellants were ordered to pay interest from the amendment date until duty payment, with the impugned order modified accordingly.

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Issues: Liability to pay interest under Section 11AB of the Act

In this appeal, the appellants disputed their liability to pay interest as confirmed under Section 11AB. The appellants argued that Section 11AB could not be invoked as there was no suppression of facts, and the show cause notice was issued within one year without alleging any suppression. The learned SDR supported the impugned order. The facts were not in dispute; the appellants were not entitled to a specific notification, paid duty voluntarily, and no penalty was imposed. The adjudicating authority found no intention to evade duty and did not impose a penalty. The amendment to Section 11AB in the Finance Act, 2001 removed the requirement to prove fraud, collusion, or suppression, making the assessee liable for interest regardless. The appellants were held liable to pay interest from the effective date of the amendment until the duty was paid. The impugned order was modified to include interest payable from the specified date, maintaining the rest of the order. The appeal was disposed of accordingly.

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