2006 (2) TMI 525

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....vocate, for the Respondent. [Order]. -  In adjudication of a show cause notice dated 2-5-2003, the original authority confirmed against the respondents a demand of differential duty of Rs. 2,22,087/- for the period April, 1998 to February, 2003, by invoking the extended period of limitation under the proviso to Section 11A(1) of the Central Excise Act. The authority, however, dropped th....

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.... SDR pointed out that the periods of dispute in those cases were prior to 11-5-2001 and hence those decisions were not applicable to the instant case. It was argued that the ruling, that where duty was paid prior to issue of show cause notice, no interest under Section 11AB was leviable thereon, was not applicable on or after 11-5-2001 on account of the amendments brought to Section 11AA decision ....

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....er giving careful consideration to the submissions, I find that the only dispute in this appeal is whether interest under Section 11AB is liable to be levied on the amount of duty paid by the respondents, for the period from 11-5-2001. It is not in dispute that the amount of duty was paid by the assessee prior to issuance of the show cause notice. In the case of Ashok Leyland Ltd. v. Commissioner ....

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....[11-5-2001 to February, 2003], the payment of duty should be deemed to have been made in terms of sub-section (2B) of Section 11A of the Act. Explanation 2 to this sub-section reads as under :- "For removal of doubts, it is hereby declared that the interest under Section 11AB shall be payable . on the amount paid by the person under this sub­section and also on the amount of short payment o....