2007 (12) TMI 80 - AT - Central Excise

Tribunal favors appellants, upholds 15% interest rate under Sec. 11AB over 24% specified in Notification No. 42/2001.

The Tribunal ruled in favor of the appellants, determining that the interest rate under Sec. 11AB of the Central Excise Act at 15% per annum prevails over ... Whether the appellants are liable to pay interest @ of 24% p.a. as per not.. 42/01 or 15% p.a. which is the rate of interest prescribed u/s11AB - rate of interest prescribed under Sec.11AB would prevail over the rate of interest prescribed under the Notification - amendment carried out to Notification 42/01 by issue of Notification 20/07 by which “rate of interest under Sec. 11AB of the Act” has been substituted for rate of 24% interest in Notification 42/01, shall have retrospective effect The dispute in the appeal was about the interest rate applicable to the appellants - 24% per annum as per Notification No. 42/2001 or 15% per annum under Sec. 11AB of the Central Excise Act. The Tribunal ruled in favor of the appellants, stating that the rate under Sec. 11AB prevails and the amendment to Notification No. 42/01 has retrospective effect based on legal precedents. The impugned order was set aside, and the appeal was allowed.