2008 (10) TMI 661 - AT - Central Excise

Summary

Issues involved: Appeal against confirmation of duty, penalty, and interest under Section 11AB of the Central Excise Act, 1944.

Confirmation of duty, penalty, and interest:
The appeal arose from an Order-in-Appeal confirming duty, penalty, and interest under Section 11AB. The Tribunal held that interest and penalty were not leviable based on previous rulings and judgments. The Tribunal referred to the case law of Rashtriya Ispat Nigam Ltd. and CCE vs. Machine Montell (I) Ltd., which were upheld by the Hon'ble Apex Court and the Tribunal's Larger Bench judgment. The matter was remanded by the High Court to consider the aspect of interest levy. The High Court confirmed the Tribunal's order regarding the non-levy of penalty.

Levy of interest under Section 11AB:
The appellant argued that the duty demand pertained to a period before the amendment to Section 11AB, and thus interest should not be levied for that period. The appellant contended that the second proviso to Section 11AB should not apply in this case. The respondent argued that interest could be charged for the period before the amendment to Section 11AB. The Tribunal considered both submissions and ruled in favor of the appellant. It held that no interest liability would arise on the duty amount payable before the date of the amendment to Section 11AB.

This judgment highlights the Tribunal's decision to not levy interest and penalty based on previous rulings and the specific circumstances of the case regarding the duty demand and the applicability of Section 11AB.