Court sets aside interest demand for insurance and freight charges, remands for recalculation.

The court set aside the interest demand for insurance and freight charges from April 2001 to 11.5.2001, ruling it not payable due to the absence of required elements. The case was remanded for re-calculation of interest from 11.5.2001 to July 2004, partially allowing the appeal.

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Issues involved: Interest payable under Section 11AB on insurance and freight charges for the period from April 2001 to July 2004.

Analysis:
1. The appellant admitted error in not including insurance and freight charges in duty liability before the show cause notice was issued.
2. The challenge was regarding the liability to pay interest, citing a Tribunal decision.
3. The judgment noted the requirement of elements like fraud, collusion, misstatement, or suppression of facts for interest under Section 11AB before 11.5.01.
4. Post-amendment, interest is chargeable on all unpaid amounts from 11/05/01.
5. The explanation to Section 11AB(1) bars interest for duty paid before the President's assent.
6. Interest for April 2001 to 11.5.2001 was deemed not payable.
7. The interest demand for this period was set aside, and the case was remanded for re-calculation.
8. The judgment allowed the appeal partly, directing re-quantification of interest for the period from 11.5.2001 to July 2004.

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