Interest not Imposed on Prepaid Amounts: Rajasthan High Court Ruling

The High Court of Judicature for Rajasthan at Jodhpur dismissed the appeal in favor of the assessee, ruling that interest under Section 112(2)(b) could not be imposed as the amount was paid before determination. The decision aligned with a precedent set in a previous case, Central Excise Appeal No. 2/2005 "Rajasthan Texchem Ltd. v. Union of India."

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The High Court of Judicature for Rajasthan at Jodhpur dismissed the appeal in favor of the assessee, holding that interest under Section 112(2)(b) can only be levied after 30 days from the date of determination. Since the amount was paid before determination, no liability could be imposed on the assessee. The judgment is based on a previous ruling in Central Excise Appeal No. 2/2005 "Rajasthan Texchem Ltd. v. Union of India" reported in 2008 (229) E.L.T. 50 (Raj).

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