TaxTMI 
TaxTMI 
2018 (4) TMI 659
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.... Ltd. are engaged in the manufacture of various petroleum products. They were receiving LPG from ONGC's Uran premises through pipelines. The LPG was cleared from ONGC's Uran without payment of duty under AR3A bond procedure. Part of the LPG was captive consumed always the respondent were not paying the duty. However on initiated of investigations against ONGC the respondent paid full duty paid for the period July 1997 to July 2002 in the month of September 2002. The respondent took credit of the duty paid immediately after payment. Separate proceeding for disallowing the CENVAT credit for initiate however the same were dropped by the Commissioner. The respondent had not paid interest on the Excise duty paid by them for the period July 1997 ....
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....otice under sub-section (1) in respect of the duty so paid; v) Explanation 2 states that "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 subsection". He argued that Section 11A(2B) does not require to determination of duty and thus failure to issue demand of duty under Section 11A(2B) cannot be a reason for setting aside demand of interest. 3.1 In these circumstances, learned AR argued that the order issued by the Commissioner is incorrect. He further argued that there is a case of determination of penalty in the instant case. The impugned order does not give any finding why the penalty imposed as there was a significant delay in pay....
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.....) and Kwality Ice Cream Company Vs. Union of India 2012 (281) ELT 507 (Del.). Learned Counsel also relied on the decision of Hon'ble High Court of Gujarat in the case of C.C.E. & C., Vadodara-II Vs. Gujarat Narmada Fertilizers Co. Ltd. - 2012 (285) ELT 336 (Guj.) 5. We have gone through rival submissions, we find that a show-cause notice dated 23.07.2004 was issued for demanding interest on the LPG captive consumption during the period July 1997 to June 2001. Revenue is essentially in appeal against the order on the ground that the provisions of Section 11AB can be invoked in absence of demand of duty paid under Section 11A(2) or paid under Section 11A(2B). The review order does not challenge the finding of the Commissioner, there w....
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....use notice which could have been validly issued and surely not a notice which had become time-barred. If by efflux of time and in absence of availability of extended period of limitation, such show cause notice itself had become time-barred, any payment made voluntarily by the manufacturer cannot be viewed as one made under sub-section (2B) of Section 11A of the Act. 12. In the present case, we have already held that time for issuing such a notice was one year, which period had already expired. 13. Accepting the stand of the Department that even in such a case once the payment of duty is made, interest liability would follow would bring about an incongruent situation. The recovery of the unpaid or short paid duty would become time-bar....