Tribunal upholds Revenue's appeal on interest liability under Central Excise Act 1944

The Tribunal allowed the Revenue's appeal, upholding interest liability under section 11AB of the Central Excise Act 1944 from 28/9/1996 onwards. The appeal set aside the earlier decision that had not upheld the interest imposed by the adjudicating authority, confirming interest liability due to non-payment of duty during the specified period.

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Issues:
Interest liability under section 11AB of the Central Excise Act 1944.

Analysis:

Issue 1: Interest liability under section 11AB of the Central Excise Act 1944

The appeal was filed by the Revenue against the setting aside of interest levied by the adjudicating authority without reasoning by the first appellate authority. The Departmental representative argued that the respondent had cleared goods by mis-declaring and evading Central Excise duty during 1993-94 to 1998-99. While the duty and penalty were upheld, the interest was not. The Tribunal noted that the interest liability arises when the demand is confirmed under section 11AB of the Act. It was found that interest for the period prior to 28/09/1996 was not liable to be imposed based on the settled law by the Apex Court. However, interest liability from 28/9/1996 was confirmed since the duty was not paid during that period. Therefore, the impugned order was set aside, and the appeal by the Revenue was allowed on this issue.

In conclusion, the Tribunal upheld the interest liability under section 11AB of the Central Excise Act 1944 for the period from 28/9/1996 onwards, as the duty was not paid during that time. The appeal by the Revenue was allowed, setting aside the earlier decision that had not upheld the interest imposed by the adjudicating authority.

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