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of <h1>High Court Upholds Tribunal Decision on Interest Payment Before Show Cause Notice</h1> The High Court of Karnataka at Bangalore upheld the decision of the Customs, Excise, Service Tax Appellate Tribunal regarding the liability to pay ... Interest Issues:Challenge to order passed by Customs, Excise, Service Tax Appellate Tribunal regarding liability to pay interest when duty paid before show cause notice.Analysis:The appellant challenged the order passed by the Customs, Excise, Service Tax Appellate Tribunal, South Zone Bench at Bangalore, which set aside the Commissioner's order stating that the assessee is not liable to pay interest as duty was paid before the show cause notice was issued. The appellant cited a similar view taken by the High Court of Karnataka in a previous case and mentioned a pending Special Leave Petition before the Supreme Court. However, the High Court noted that in a previous case involving Shree Krishna Pipe Industries Ltd., the court had held that if duty is paid before the show cause notice, penalty should not be imposed, and interest should not be levied. The High Court agreed with this view and stated that until the law laid down by the court is annulled, the decision stands. Therefore, the Tribunal did not err in following the precedent set by the High Court. The High Court dismissed the appeal at the admission stage, finding no cause to intervene.In summary, the High Court of Karnataka at Bangalore upheld the decision of the Customs, Excise, Service Tax Appellate Tribunal regarding the liability to pay interest when duty is paid before the issuance of a show cause notice. The High Court referred to a previous case involving Shree Krishna Pipe Industries Ltd., where it was held that if duty is paid before the show cause notice, penalty should not be imposed and interest should not be levied. The High Court found that the Tribunal's decision was in line with the precedent set by the court and dismissed the appeal, stating that the decision stands until annulled by the court.
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