2004 (12) TMI 510

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....R.V. Ramakrishnappa, JDR, for the Respondent. [Order]. - This is an appeal against OIA No. 73/2003-C.E., dated 21-7-2003 passed by the Commissioner of Central Excise (Appeals) II Bangalore. The short point is whether interest is payable on the differential duty due from the appellants for the period from April 1999 to March 2000 even though the duty was paid after 1-4-2000 in terms of Rule 1....

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....ant case as of the date on which the interest clause was introduced, there was an outstanding amount which was not paid on the dates on which it ought to have been paid. Therefore, the interest starts accruing from the date on which the interest clause was brought in on the outstanding amount till the date on which it is actually paid. In view of this it cannot be said that the interest was charge....

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....on 28-9-1996. The Board clarified that Section 11 AB can be invoked only respect of clearances effected after 28-9-1996-irrespective of the date of passing of the adjudication order. In coming to such a conclusion, the board placed reliance on the decision in M/s. M.P. Tapes [1998 (103) E.L.T. 128 (T)] wherein it was held that with regard to imposition of penal interest under Section 11AB, the int....

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....ity in respect of past transaction or consideration already passed. 4. Learned JDR reiterated the contention in the OIA. 5. I have carefully considered the submissions made by the appellants and the revenue. The issue is simple. The interest clause 173G (1)(d) was introduced only with effect from 1st April 2000. 173G(l)(d) reads as follows. "If the manufacturer fails to pay the ....