2006 (3) TMI 512 - AT - Central Excise

Summary

Issues:
Appeal against confirmation of interest under Section 11AB of Central Excise Act, 1944.

Analysis:
The case involved a stay application against the confirmation of interest of Rs. 64,927 against the appellants. The issue was related to the payment of a differential duty for the period from 1-4-2001 to 1-4-2003 due to an upward revision of the price of goods supplied to customers. The appellants raised supplementary invoices showing the raised price, calculated the differential duty, and deposited it with the Government. The show cause notice directed them to pay interest under Section 11AB of the Act. The appellants contested the notice on grounds of interest not being payable, citing a precedent and time bar. The Adjudicating Authority confirmed the interest demand, which was upheld by the appellate authority, leading to the appeal.

The provisions of Section 11AB were central to the case, which mandated interest payment on delayed duty. The interest calculation was from 11-5-2001 onwards, and the demand was for the period 1-4-2001 to 1-4-2003. The appellants had voluntarily paid the differential duty under Section 11A(2B) before any notice was served on them. The Tribunal analyzed the relevant sections and found that the appellants were liable to pay interest in addition to duty as per Section 11AB. The Tribunal highlighted the provisions of Section 11A(2B), allowing payment of short-paid duty by the assessee before notice service, which aligned with the requirement of paying interest under Section 11AB.

Regarding the precedent cited by the appellants, the Tribunal distinguished the case cited, stating it was not applicable as it dealt with confirmation of duty demand under a different subsection of Section 11A. In the present case, only the interest amount was being confirmed, not any demand. Therefore, the Tribunal found no reason to interfere with the Order-in-Appeal and dismissed the appeal. The judgment provided a detailed analysis of the legal provisions, precedents, and factual circumstances, leading to the dismissal of the appeal against the confirmation of interest under Section 11AB of the Central Excise Act, 1944.