Penal interest not imposed on pre-law clearances under Central Excise Act

The HC upheld the Tribunal's decision not to impose penal interest under Section 11AB of the Central Excise Act, 1944, on clearances made before the law allowing such levy was in effect. The petition was dismissed.

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The High Court of Judicature at Madras upheld the Customs Excise and Gold (Control) Appellate Tribunal's decision not to refer the question of penal interest under Section 11AB of the Central Excise Act, 1944. The Tribunal ruled that penal interest could not be imposed on the assessee for clearances made before the law allowing such levy came into effect. The Court dismissed the petition.

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