2011 (9) TMI 1123 - HC - Central Excise

Summary

Issues involved: Appeal u/s. 35G of Central Excise Act, 1944 regarding interest on delayed payment of duty on enhanced value at the time of issuance of supplementary invoices.

Summary:
The assessee appealed against the Customs, Excise & Service Tax Appellate Tribunal's order regarding the levy of interest u/s. 11AB of the Central Excise Act, 1944 on delayed payment of duty on enhanced value. The matter was remanded by the Apex Court for fresh consideration in light of previous decisions. The Tribunal had denied interest u/s. 11AB based on a previous judgment. The High Court dismissed the appeal stating no substantial question of law arose. The Apex Court set aside the High Court's order for fresh consideration. The High Court, after examining the facts and the law, allowed the appeal based on the decision in the case of International Auto Ltd. The Court emphasized the changes in the recovery of duty under the Act and the applicability of interest under Section 11AB. The appeal was allowed, and the Tribunal's order was quashed.

In conclusion, the High Court allowed the appeal based on the decision in the case of International Auto Ltd., emphasizing the changes in the recovery of duty under the Act and the applicability of interest under Section 11AB. The Tribunal's order was quashed, and the appeal was allowed with consequential relief.