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2013 (12) TMI 671 - AT - Central ExciseApplication of Section 11AA of the Central Excise Act 1944 Waiver of Pre-deposit Held that - The applicant deposited entire amount of duty on the basis of duty ascertained by Central Excise officer before issue of notice - in view of Section 11A (1)(b) of the said Act the applicant is also liable to pay interest along with duty - the demand was not time barred - The case of EID Parry was with reference to Section 11AB as it was originally introduced by Section 76 of Finance Act 1996 - Section 11AA as it stands now makes it very clear that interest is payable if duty payment is delayed Following CCE Pune Vs SKF India Ltd. 2009 (7) TMI 6 - SUPREME COURT - interest provision would apply even when deposit is made before issue of SCN - the applicant is liable to pay the amount of interest Thus the applicant is directed to deposit a sum of Rupees Ninety five lakhs as pre-deposit upon such submission rest of the amount to be stayed till the disposal Partial stay granted.
Issues: Condonation of delay in filing appeal, waiver of interest on CESS, applicability of Section 11A of Central Excise Act, liability to pay interest on duty payment delay
Condonation of Delay in Filing Appeal: The judgment addressed an application for condonation of a 15-day delay in filing the appeal. After considering the reasons presented, the delay was condoned, and the COD application was allowed. Waiver of Interest on CESS: The appellant sought a waiver of interest amounting to Rs.99,53,800, including interest on CESS and a penalty of Rs.10,000. The advocate argued that interest on CESS was not sustainable as the duty amount had been paid in full before the issuance of a show cause notice. Reference was made to a Tribunal decision and a Gujarat High Court ruling supporting the stance that no interest is payable when duty is paid voluntarily before the issuance of a show cause notice. Applicability of Section 11A of Central Excise Act: The Revenue contended that Section 11A of the Central Excise Act, 1944, mandates the payment of interest even if the duty is deposited before the service of a notice. Citing a Supreme Court judgment, the Revenue emphasized the application of interest provisions in such cases. Liability to Pay Interest on Duty Payment Delay: The Tribunal analyzed Section 11A(1) of the Act, which requires payment of duty along with interest before the service of a notice. It was noted that the appellant had paid the duty amount based on the Central Excise officer's ascertainment before the notice was issued. The Tribunal differentiated the present case from the Gujarat High Court decision, highlighting that the demand was not time-barred. Emphasizing the current provision of Section 11AA, the Tribunal affirmed that interest is payable in case of duty payment delay, as supported by the Supreme Court ruling. Consequently, the appellant was directed to deposit a specific sum within a set period, with the waiver of the remaining interest and penalty amount during the appeal's pendency. This comprehensive judgment delves into the nuances of condonation of delay, the waiver of interest on CESS, the interpretation of Section 11A of the Central Excise Act, and the liability to pay interest on delayed duty payments, providing a detailed analysis and legal reasoning for each issue addressed.
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