Appeal allowed but interest waiver denied on CESS. Liability under Section 11A emphasized. Deposit specified sum.

The appeal was allowed with condonation of a 15-day delay. The waiver of interest on CESS was denied, emphasizing liability under Section 11A of the Central Excise Act for interest payment even if duty is paid before notice. The appellant was directed to deposit a specified sum within a set period, with waiver of the remaining interest and penalty amount during the appeal's pendency. The Tribunal differentiated the case from prior rulings, affirming interest payment for duty delays per Section 11AA and Supreme Court precedent.

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Issues: Condonation of delay in filing appeal, waiver of interest on CESS, applicability of Section 11A of Central Excise Act, liability to pay interest on duty payment delay

Condonation of Delay in Filing Appeal:
The judgment addressed an application for condonation of a 15-day delay in filing the appeal. After considering the reasons presented, the delay was condoned, and the COD application was allowed.

Waiver of Interest on CESS:
The appellant sought a waiver of interest amounting to Rs.99,53,800, including interest on CESS and a penalty of Rs.10,000. The advocate argued that interest on CESS was not sustainable as the duty amount had been paid in full before the issuance of a show cause notice. Reference was made to a Tribunal decision and a Gujarat High Court ruling supporting the stance that no interest is payable when duty is paid voluntarily before the issuance of a show cause notice.

Applicability of Section 11A of Central Excise Act:
The Revenue contended that Section 11A of the Central Excise Act, 1944, mandates the payment of interest even if the duty is deposited before the service of a notice. Citing a Supreme Court judgment, the Revenue emphasized the application of interest provisions in such cases.

Liability to Pay Interest on Duty Payment Delay:
The Tribunal analyzed Section 11A(1) of the Act, which requires payment of duty along with interest before the service of a notice. It was noted that the appellant had paid the duty amount based on the Central Excise officer's ascertainment before the notice was issued. The Tribunal differentiated the present case from the Gujarat High Court decision, highlighting that the demand was not time-barred. Emphasizing the current provision of Section 11AA, the Tribunal affirmed that interest is payable in case of duty payment delay, as supported by the Supreme Court ruling. Consequently, the appellant was directed to deposit a specific sum within a set period, with the waiver of the remaining interest and penalty amount during the appeal's pendency.

This comprehensive judgment delves into the nuances of condonation of delay, the waiver of interest on CESS, the interpretation of Section 11A of the Central Excise Act, and the liability to pay interest on delayed duty payments, providing a detailed analysis and legal reasoning for each issue addressed.

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