2016 (4) TMI 976

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..... 2. The issue involved in the present case is that the show cause notice was issued only for the demand of interest and imposition of penalty under Section 11AB and 11AC respectively for the alleged offence that the appellant had availed Cenvat credit to the extent of 100% in respect of Capital goods instead of 50%. 3. Shri. Vinod Awatani, Ld. C.A. appearing on behalf of the appellant submits that the show cause notice were issued only for demand of interest and penalty under Section 11AB and Section 11AC respectively. However, no show cause notice was issued for demand of any wrong availment of Cenvat credit. Therefore there is neither the show cause notice under Section 11A(1) and nor any Adjudication Order under Section 11A(2) was....

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....on 11AB and 11AC which reads as under: Section 11 AB. Interest delayed payment of duty:- 1) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay the duty as determined under sub-section (2), or has paid the duty under sub-section (2B), of section 11A, shall, in addition to the duty, be liable to pay interest at such rate not below [ten per cent.] and not exceeding thirty six per cent per annum as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first date of the month succeeding the month in which the duty ought to have been paid under this Act, or from the date of such erroneous refun....

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....ch has been so short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice: (b) the person chargeable with duty may, before service of notice under clause (a), pay on the basis of- (i) his own ascertainment of such duty; or (ii) the duty ascertained by the Central Excise Officer, the amount of duty along with interest payable thereon under section 11AA . (2) The person who has paid the duty under clause (b) of sub-section (1), shall inform the Central Excise Officer of such payment in writing, who, on receipt of such information, shall not serve any notice under clause (a) of that sub-section in respect of the duty so paid or any....