2003 (11) TMI 436 - AT - Central Excise

Summary

Issues:
- Appeal against non-payment of interest on short-paid duty amount
- Interpretation of Section 11AB regarding interest on duty payment

Analysis:
1. The appeal was filed by the Revenue challenging the impugned order that did not require the respondents to pay interest on the short-paid/non-paid duty amount. The Tribunal had confirmed the duty demand against the respondents in a previous order. The counsel for the respondents argued that interest was rightly not demanded as there was no suppression of facts by the respondents and the show cause notice was issued within one year. However, the Tribunal held that after the amendment of Section 11AB, suppression of facts or collusion is not necessary to charge interest on non-payment/short payment of duty. Therefore, the respondents were held liable to pay interest from the date of amendment on the short-paid duty until full payment, excluding the prior period due to lack of evidence of suppression or fraud.

2. The duty liability was not disputed in the appeal as it had already been confirmed by the Tribunal in a separate order. Therefore, the impugned order was modified accordingly, and the appeal of the Revenue was disposed of.

This judgment clarifies the application of Section 11AB in charging interest on short-paid duty amounts, emphasizing that under the amended provisions, suppression of facts is not a prerequisite for imposing interest. It also highlights the importance of timely payment of duties to avoid additional financial liabilities.