2007 (12) TMI 96

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....ember, 2003, January, 2004, February, 2004 and March, 2004. They paid the interest amounting to Rs 64,17,534/- through TR-6 Challans at the rate of 15% in terms of Rule 8(3) read with Notification 19/2002-C.E., dated 13-5-2002. However, the Revenue proceeded against the respondent on the ground that after 1-3-2003 by virtue of Notification 12/2003, dated 1-3-2003, the rate of interest has changed. Since they paid duty and interest only after 1-3-2003, the rate prescribed in the above Notification will be applied, as duty amounts were outstanding on that date. The lower authority demanded Rs 24,99,127/- being the interest short-paid. Further, he imposed a penalty of Rs. 20,000/- under Rule 27 of the Central Excise Rules, 2002. The respondent....

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....Ltd. v. CCE, 2003 (156) E.L.T. 668 quoted by Commissioner (A) is based on different circumstances and is not at all relevant to the present case. > Without prejudice to any thing mentioned above, this is a plain case of applicability of rate of interest during the period i.e. between date on which duty was due and date on which duty was actually paid. And when we compare similar situations viz. (i) Demand of Duty under Section 11A, (ii) Demand of interest on ware housed goods on expiry of normal warehousing period, the same principle as explained above is adopted while calculating the interest. This is a well-established procedure and the same has been upheld by various judicial fora on many occasions. 3. On a very careful considerati....