Tribunal sets aside interest without duty determination under Central Excise Act.

The Tribunal allowed the appeal, setting aside the impugned order that confirmed interest without determining duty under the Central Excise Act. The Tribunal held that imposing interest under Section 11AB was unjustified as demands were not determined under Section 11A(2). The appellant successfully argued that interest should not be levied without first establishing duty. Consequently, the appellant's challenge was upheld, and any consequential relief was ordered to follow.

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Issues:
Challenge to imposition of interest in absence of determination of duty.

Analysis:
The appellant contested the imposition of interest without the determination of duty by the Revenue. The Commissioner (Appeals) did not agree with the appellant's argument that interest should not be levied without determining duty in the impugned Order-in-Appeal No. 91/2004. The appellant was coerced to pay the duty. Subsequently, proceedings were initiated without determining duty, only confirming interest, which the appellant challenged. The appellant's representative cited cases where the Tribunal set aside interest confirmation in similar situations. The learned SDR noted that the issue was settled, and the appeal should be disposed of.

Upon careful consideration, the Tribunal found that demands were not determined under Section 11A(2) of the Central Excise Act, 1944. Therefore, the imposition of interest under Section 11AB was unwarranted. The Order-in-Original only confirmed interest, which was upheld by the Commissioner (Appeals). Since duty was not determined under Section 11A, confirming interest under Section 11AB was inappropriate, as per the Tribunal's precedent in similar cases. Consequently, the impugned order was set aside, and the appeal was allowed, with any necessary consequential relief to follow.

The judgment was pronounced in open court upon completion of the hearing.

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