Interest under Central Excise law not recoverable when duty is paid within three months of appellate confirmation

Interest under section 11AA of the Central Excise Act was held not recoverable because the duty was paid within three months of the Tribunal's decision upholding the demand. The applicable payment period was computed from the date of the appellate decision, not from the date of the Commissioner (Appeals)' order. As the assessee discharged the duty within that statutory period, the basis for charging interest did not survive, and no interest liability arose.

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Issues: Whether interest under section 11AA of the Central Excise Act was recoverable where the duty was paid within three months from the date of the Tribunal's decision upholding the duty demand.

Analysis: The period for payment of duty had to be computed from the date of the appellate decision upholding the demand, not from the date of the Commissioner (Appeals)' order. Since the duty had been paid within three months from the Tribunal's decision, the statutory basis for charging interest did not survive.

Conclusion: The assessee was not liable to pay interest.

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