TaxTMI 
TaxTMI 
2007 (8) TMI 109
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....es like Vadodara, Kosamba, and Petrofils. From their Vadodara Unit, they have cleared' goods like Caprolactum and Sulphuric acid during the period from April to September, 2004 on payment of duty to their other units. For the purpose of payment of duly at the time of clearance, they have adopted the assessable value by adding 10% profit margin which was estimated on the basis of the previous year data. (b) On 20-10-2004, on being pointed out by the audit party, the differential duty amounting about Rs. 75 lakhs has been paid which was the duty payable on value adopting CAS-4 norms. They have received the CAS-4 certificate in the beginning of the year 2004. (c) The Original Authority confirmed the demand of Rs. 75,15,871/- which was since ....
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....pal is not chargeable. 4.3 Since the duty has been paid after receipt of the CAS-4 certificate and on being pointed out by the audit parties, interest under Section 11AB is not attracted. The show cause notice for recovery of interest relating to April- September, 2004 issued in March, 2006 is also time barred. Since demand of duty is time barred, the demand of interest also should be treated as time barred. He also relied on the decisions in the case of In Re : Presidential Election - AIR 1974 SC 1682, M/s. Star India P. Ltd. [2006(1) S.T.R. 73 (S.C.)] and M/s. Raymonds Ltd. [2001 (129) E.L.T. 327 (T-LB)]. 5. The id. SDR reiterates the findings of the Commissioner (Appeals). 6.1 We have carefully considered the submissions from both sid....
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.... rate or on such value as may be specified by him." 6.3 The Commissioner (Appeals) findings regarding applicability of interest are reproduced below: "The appellants have also contended that interest is payable only when a Central Excise officer determines central excise duty payable under sub-section (2) of Section 11A of the Central Excise Act and that as in this case, the duty had been paid by them on their own accord before issue of show cause notice, interest was not payable. The above plea of the appellants is however not acceptable. It is observed that Section 11A(2B) only provides that where the duty short levied/short paid is paid by the appellants on their own accord prior to issue of show cause notice under Section 11A of the A....
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.... short-paid/short-levied etc. is determined by the Central Excise Officer under sub-section (2) of Section 11A of the Central Excise Act, or it is paid by the assessee on his own volition under sub-section 2B of Section 11A ibid before issue of show cause notice. That the above interpretation is the correct interpretation is also supported by Explanation 2 to Section 11A(2B) of the Act which provides as follows :- Section 11A(2B)……….. Explanation 2. - For the 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 sub-section and also on the amount of short- payment of duty, if any, as may be determined by the Central Excise Officer, but for this sub-....