https://www.taxtmi.com/caselaws?id=1645 Pre-notice payment of short-paid excise duty does not, by itself, extinguish liability to interest under Section 11AB, because interest is a compensatory civil levy that remains payable on short payment even where duty is deposited before the show cause notice. The text also states that penalty under Section 11AC is attracted where short payment results from fraud, collusion, wilful misstatement, suppression of facts, or similar intent to evade duty, and pre-notice payment alone does not remove that exposure if those statutory ingredients exist. The operative distinction drawn is between compensatory interest and penal liability, both governed by the statutory conditions in the Central Excise Act. en-us Wed, 25 Jul 2007 00:00:00 +0530 Mon, 15 Sep 2025 11:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=1645 Pre-notice payment of short-paid excise duty does not, by itself, extinguish liability to interest under Section 11AB, because interest is a compensatory civil levy that remains payable on short payment even where duty is deposited before the show cause notice. The text also states that penalty under Section 11AC is attracted where short payment results from fraud, collusion, wilful misstatement, suppression of facts, or similar intent to evade duty, and pre-notice payment alone does not remove that exposure if those statutory ingredients exist. The operative distinction drawn is between compensatory interest and penal liability, both governed by the statutory conditions in the Central Excise Act. Case-Laws Central Excise Wed, 25 Jul 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=1645