TaxTMI 
TaxTMI 
2006 (7) TMI 497
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....vide his Review Order No. III(20)RC/TBL/302/06, dated 15-5-06, in respect of dropping of the case proceedings vide the above referred Order-in-Original. 2. In brief, the facts of the case are that the department had issued Show Cause Notice to M/s. Veekay Alloys Conductors P. Ltd. Jabalpur (M.P.), requiring them to show cause to the Asstt. Commissioner, Central Excise Division - Jabalpur as to why - (i) the interest amount Rs. 1483/- should not be recovered from them as per provisions laid down under Section 11AB of the Act. 3. The Adjudicating Authority vide Order-in-Original No. 38/DEM/ 05-06, dated 27-10-05 has dropped the proceedings initiated vide referred Show Cause Notice on the ground....
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....ly dropped the case proceeding based on the facts on the records and on its merits. Review order is merely based on conjucture and appears to be prejudiced basically the said amount of interest was an offshoot of audit objection raised in the matter. (2) the Hon'ble Commissioner, Central Excise, Bhopal has not cited any reference of Supreme Court, High Court and CESTAT on the subject issue in his review order dated 15-5-2006 to support the case except simple quoting of the Section 11AB of the Act in re-demand of the said interest on differential duty, accrued due to variation clause made in the contract/purchase order and known to the respondent subsequently. (3) the respondent relied on....
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....icity Board inform the respondent about the variation. The respondent raises a supplementary invoice and pays the differential duty. A show cause notice dated 10-8-05 was issued by the Asstt. Commissioner, Central Excise Dn. Jabalpur asking the respondent to pay interest of Rs. 1,483/- under Section 11AB of the Central Excise Act, 1944 (The provisions of Rule 8(3) of the C. Excise Rules, 2002 were not invoked as wrongly mentioned in the Review application). The lower authority dropped the proceedings against which the Review application has been filed by the appellant. 8. The differential excise duty depending upon the price increase was paid by the respondent in the year 2001-02. The show cause notice dated 10-8-05 was issued after....
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....ty, such circumstance cannot be construed to mean that it failed to pay the excise duty on the due date". 9. In the case of Overseas Synthetics Ltd. v. CCE, Surat-II - 2004 (165) E.L.T. 439 (Tri.-Mum), the Tribunal has held that if the liability to pay duty did not arise as a result of any actor omission by the appellant, then the provisions of Section 11B will not apply. In the said case, the assessee concerned, who had availed Modvat credit under Rule 57A, was asked to reverse the Modvat credit on the stock of inputs and those used in the manufacture of the textured yarn which had become chargeable to specific rate of duty. Interest under Section 11AB was also demanded. The CESTAT held as follows : "I however agree that there i....