2008 (12) TMI 200

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.... on to the buyers and remitted the same to the Government. For delay in making good the duty short paid for the clearances, made with effect from 11-5-01, the assessee also paid the interest due of Rs. 5,23,359/-. For duty short paid for the clearances prior to 11-5-01, the department determined the applicable interest due from the assessee as Rs. 3,51,303/-. The impugned order confirmed the demand for interest for the period prior to 11-5-01 relying on a judgment of the Apex Court in Haji Lal Mohd. Biri Works v. State of UP reported in 1973 (32) STC 496 (S.C.), wherein the Apex Court - had held that when liability to pay interest was automatic and arose by operation of law, it was not necessary to make an assessment in respect of interest ....

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....x court in Commissioner of Trade Tax, Lucknow v. Kanhai Ram Thekedar reported in 2005 (185) E.L.T. 3 (S.C). 4. I have carefully considered the facts of the case and the rival submissions. I find that the appellants paid interest due for delayed payment of differential duty for clearances made from May, 2001 onwards on their own. Extract of Section 11AB relevant to the dispute reads as follows: "SECTION 11A(2B) Interest on 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 dut....