2003 (12) TMI 367

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....se notice dated 22-3-91 was issued to M/s. Venus Industries for demanding the duty for the period from 1-3-86 to 13-8-88 as they had wrongly availed of the small scale exemption benefit under Notification No. 175/86-C.E.; that the matter was adjudicated by the Collector under Order-in-Original No. 26/92, dated 23-4-92, by which he confirmed the demand of duty of Rs. 10,50,165.76 and penalty of Rs. 50,000/- was imposed; that, however, on appeal, the appellate Tribunal, vide Final Order No. 384/2000-B, remanded the matter to the Commissioner for consideration of the applicability of the Proviso (b) to Para 4 of the Notification No. 175/86; that the Commissioner, in de novo proceedings under Order-in-Original No. 45/2001 dated 28-11-2001, has ....

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....alments and the last instalment was paid on 12-12-2002 and, accordingly, they are required to pay interest for the period from 26-8-95 to 11-12-2002. Reliance has also been placed on the decision in the case of C.C.E., Bhubaneswar-II v Orissa Concrete Products (India) Pvt. Ltd., 2001 (133) E.L.T. 787 (Tri.-Kolkata), wherein the Tribunal has held that the Provision of Section 11AA clearly shows that for the arrear cases pending for recovery before the enactment of Finance Act, 1995 if the defaulter fails to pay the duty within a period of three months from the date of enactment, he shall be liable for payment of interest. 3. Countering the arguments, Sh. J.P. Kaushik, learned Advocate, submitted that the demand of Central Excise duty....

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....o. 665/46/02-CX., dated 26-8-2002 has clarified that the net effect of the judgment in the case of M.P. Tapes is that Section 11AB of the Central Excise Act can be invoked only in respect of clearances effected after 28-9-96 irrespective of the date of passing of the adjudication order; that similarly, the interest under Section 11AA can only be demanded in respect of clearances effected after Section 11AA was inserted in the Central Excise Act. 4. We have considered the submissions of both the sides. Section 11AA of the Central Act, which came into effect from 26-5-1995 provides for payment of interest if a person fails to pay the duty as determined under sub-section (2) of Section 11A of the Act within three months from the date o....