2003 (9) TMI 487

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....anathan, Advocate, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. - The present appeal has been filed by the Revenue against not confirming interest under the impugned order. 2. Shri T.K. Kar, ld. DR, submitted that M/s. Telco Ltd., Jamshedpur availed of Modvat credit of the duty paid on the inputs used in or in relation to the manufacture of their final product; that du....

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....ation of demand; that, however, he has set aside the penalty imposed under Section 11AC and interest demanded under Section 11AB on the ground that the provisions of these sections are not to be applied retrospectively; that the Commissioner (Appeals) has also set aside the penalty imposed under Rule 173Q on the ground that the penalty is not imposable where the assessee has taken corrective steps....

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....ion which took place prior to the date on which Section 11AB came into force. He relied upon the decision in the case of CCEx. v. Elgi Equipments Ltd. - 2001 (128) E.L.T. 52 (S.C.) and M/s. Nirmal Overseas Ltd. v. CCEx. - 2002 (149) E.L.T. 265 (Tribunal). He also emphasised that the Department has not challenged the findings of the Commissioner (Appeals) that non-payment of duty was not by reason ....

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....Tribunal). 4. We have considered the submissions of both sides. It is well settled law that the provisions of Section 11AB for imposing interest will not be applicable in respect of the demand of duty prior to the period of insertion of Section 11AB in Central Excise Act i.e. 28-9-96. Further, we observe that the demand of duty confirmed and not challenged by the respondents pertains to th....