Section 11AA interest not payable on voluntarily paid differential duty without duty determination under section 11A(2).

Interest under section 11AA of the Central Excise Act was payable only where duty remained unpaid after determination under section 11A(2). As the assessee voluntarily computed and paid the differential duty, and no order determining duty under section 11A(2) existed, the statutory trigger for interest was absent. Interest was therefore held not applicable, and the Revenue's rectification application failed on that issue.

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Issues: Whether interest under section 11AA of the Central Excise Act, 1944 was leviable where the assessee had paid the differential duty voluntarily and there was no determination of duty under section 11A(2) of the Central Excise Act, 1944.

Analysis: Interest under section 11AA is attracted only when duty remains unpaid after the expiry of the period reckoned from the date of determination of duty under section 11A(2). On the facts, the assessee had itself worked out and paid the differential duty voluntarily, and no order determining the duty under section 11A(2) existed. In such circumstances, the statutory condition for charging interest was not satisfied.

Conclusion: Interest under section 11AA was held to be not applicable, and the Revenue's rectification application failed on that issue.

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