Tribunal rules interest not payable if duty paid before notice issued. Precedent cited.

The Tribunal allowed the appeal, holding that interest should not have been demanded as the duty was paid before the show cause notice was issued, citing a precedent where interest was not imposed in a similar situation.

---

---

The appeal was filed against the order of the Commissioner (Appeals) confirming the demand for interest under Section 11AA of the Central Excise Act. The appellant paid the duty before the show cause notice was issued, so interest should not have been demanded. The Tribunal allowed the appeal citing a similar case where interest was not levied when adjudication proceedings were not conducted under Section 11A.

---