TaxTMI 
TaxTMI 
2010 (6) TMI 226
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....,94,096.86 covering the period from May 1992 to March 2000. The lower appellate authority ordered for levy of interest on the above amount of duty under Section 11AB ibid. It held so in an appeal of the department filed against order-in-original No. 292 to 298/2001 dated 9-3-2001 passed by the Dy. Commissioner who had not ordered for recovery of interest under Section 11AB while confirming demand of duty. 2. After hearing the learned Senior Counsel for the appellant and the learned SDR for the respondent, we note that the short question to be considered is whether Section 11AB of the Act would be invocable for levy of interest from the assessee on the facts of this case. Seven show-cause notices were issued by the department for recovery....
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....t entitled to levy interest on duty under Section 11AB. The learned Counsel has contextually referred to the amendment made to Section 11AB on 11-5-2001. The Finance Act, 2001 substituted a new text for Section 11AB in the place of the erstwhile text. In the new text, requirements like fraud, collusion etc. were done away with and the Revenue was enabled to levy interest on duty (non-paid, short-paid etc.) determined under sub-section 2 of Section 11A of the Act. Sub-section (2) of the amended Section 11AB ruled out the application of sub-section (1) to cases where the duty had become payable or ought to have been paid before the date on which the Finance Bill, 2001 received the assent of the President. The Finance Bill received the Preside....
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.... 8 of the U.P. Sales Tax Act, it was held that the liability to pay interest accrued automatically. Certain other decisions, wherein different aspects of Section 11AB of the Central Excise Act were considered, also have been cited by the SDR. The learned SDR has also submitted that the duty was paid after 11-5-2001 and, therefore, the amended provisions of Section 11AB(1) of the Central Excise Act should be applied. In his rejoinder, the learned Counsel has referred to Circular No. 655/46/2002-CX., dated 26-6-2002 wherein the Board accepted the view taken by this Tribunal in Commissioner v. M.P. Tapes - 1998 (103) E.L.T. 128 (T) and clarified that, for the applicability of Section 11AB(1) as amended under the Finance Act, 2001, the duty sho....
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.... 6. The decisions cited by the learned SDR are not on the point under consideration. Me ha?, heavily harped on the High Court's judgment. In that case, their Lordships were considering the provisions of Section 11AB(1) as amended with effect from 11-5-2001. The pre-amendment provisions were not examined in that case. Therefore, neither the High Court' s Judgment nor the fact that the party failed to get interim stay from the Hon'ble Supreme Court against the High Court's judgment is of any support to the Revenue. The plea of "automatic accrual of interest" is not relevant to the context where a statutory provision for levy of interest is under scrutiny. Other decisions cited by the learned SDR are on issues of different shades not akin to....