Payment of interest when duty is confirmed by CESTAT

[Asked by Guest]

In my case SCN was given by Dept which was contested by me and Commissioner (A) held that service tax was paid correctly and no more duty can be demanded. Commissioner (A) also set aside Penalty and Interest.  Dept went in appeal and CESTAT has set aside the duty demand beyond normal limitation and allowed demand only during normal limitation. Penalty is set aside but no order on Interest. Am I liable to pay any Interest on duty confirmed by CESTAT? Please provide solution with supporting case laws if possible. Thanking in anticipation.  

AI Summary

Interest as compensatory payment: liability arises when duty is confirmed on appeal, payable from date of non payment.
Interest on duty sustained on appeal is an automatic statutory consequence described as a compensatory payment, payable even if not mentioned in the SCN. An earlier order truncating demands does not negate interest on the portion confirmed by the appellate order. Interest accrues from the date of non payment for the period of duty confirmed and there is no interest on interest. Payment is typically required in cash, though taxpayers may attempt CENVAT adjustment.