2007 (10) TMI 89 - AT - Central Excise

Amendment in Sec. 11AB on 11.5.01, after amendment interest can be charged on the only amount that has not been paid from 11.5.01 In this case period is from April to July 2001 So interest on account of delay in payment of duty is payable only from 11.5.01 to July 2004

Summary

Issues involved: Interest payable under Section 11AB on insurance and freight charges for the period from April 2001 to July 2004.

Analysis:
1. The appellant admitted error in not including insurance and freight charges in duty liability before the show cause notice was issued.
2. The challenge was regarding the liability to pay interest, citing a Tribunal decision.
3. The judgment noted the requirement of elements like fraud, collusion, misstatement, or suppression of facts for interest under Section 11AB before 11.5.01.
4. Post-amendment, interest is chargeable on all unpaid amounts from 11/05/01.
5. The explanation to Section 11AB(1) bars interest for duty paid before the President's assent.
6. Interest for April 2001 to 11.5.2001 was deemed not payable.
7. The interest demand for this period was set aside, and the case was remanded for re-calculation.
8. The judgment allowed the appeal partly, directing re-quantification of interest for the period from 11.5.2001 to July 2004.