2007 (5) TMI 490

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....paper. They have availed Modvat credit for Rs. 98,655/- vide RG 23 Pt. IIE No. 122, dated 4-8-1990 on the input, viz. evaporation boats on the strength of bill of entry No. 006619, dated 18-7-1990 under Rule 57 of Central Excise Rules, 1944. The department alleged that this credit was not admissible to the appellant. The show because notice was issued on 5-2-1991 demanding duty and the same has been confirmed vide order-in-original No. 50/1991, dated 8-4-1991. Since the appellant did not dispute the payment of duty, they have not chosen to file an appeal but paid the confirmed duty demand lately on 18-10-2002. Thereafter the department has been addressing letters to pay the interest amount of Rs. 1,20,606/- under Section 11AA of the Central....

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....oida, 2004 (163) E.L.T. 88 (Tri.-Del.) 7.      Commissioner of Customs, Chennai v. Shasun Drugs & Chemicals, 2004 (170) E.L.T. 193 (Tri.-Chennai) 8.      Lakshmi Machine Works v. Commissioner of Central Excise, Coimbatore, 2004 (170) E.L.T. 196 (Tri.-Chennai). The text of the judgments shows that the interest is not demandable as the payment of duty relates to the period prior to the introduction of interest clause. It appears that the department did not agree with the said proposition and persisted upon the payment of interest amount. At last it culminated into attachment of the goods of the appellant in the factory premises by conducting a panchnama and taking coercive steps by pu....