2016 (3) TMI 438

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...., Enclosures and accessories etc. and they are entitled upto 50% of the FOB value of exports into DTA sales. They have cleared the goods to their DTA unit in the month of January, April, May and August, 2011, without payment of duty. Accordingly, a show cause notice dated 20.01.2012 was issued to the appellant demanding duty of Rs. 1,12,25,765/- along with the proposal for interest and penalty under Section 11AC of the Central Excise Act, 1944 and also under Rule 25 of Central Excise Rules, 2002. The adjudicating authority in his order confirmed the demand of Rs. 1,12,25,765/- under Section 11A (4) of the Central Excise Act, 1944 read with Section 11D of the Central Excise Act, 1944, and also appropriated entire duty amount paid by them and....

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.... passing of the adjudication order. He prays for waiver of penalty as there is no mis-declaration and intention to evade payment of duty and there is no suppression of facts. He further submits that the Company is under BIFR. 4. On the other hand, the Ld. AR, Shri Veerabadra Reddy, JC (AR) reiterated the findings of the Order-in-Original and drew attention of the Bench to paras 9 & 10 of it and submits that the appellants have cleared the goods without payment of duty. Therefore, show cause notice has been issued for non-payment of duty and the demand has been rightly raised and the adjudicating authority has rightly confirmed the duty demand. He further submits that regarding interest, from January to March, 2011, the interest to be paid ....

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....ords and date of payment, we find that the appellants have paid duty on various dates ie. on 8/10/2011, 12/12/2011, 31/3/12 and 05/04/2112. We also find that the statutory interest prescribed during the period from January to March, 2011 @ 13% and from 01.04.2011, the statutory interest has been increased to 18%. The adjudicating authority had rightly computed the interest amount from the due date to till the date of payment in respect of demand for the month of January, 2011. Since the appellants paid the amount on 8.10.11, 12/12/2011 and 31.03.12, Revenue has correctly worked out the interest @ 13% upto 31.03.2011 for 54 days and for the remaining period the interest was computed by adopting 18% rate of interest. Whereas, on perusal of th....