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2017 (9) TMI 767 - AT - Central ExciseDemand of interest - Held that - when the duty is paid late, i.e. after the due date as provided under Section 11AB of Central Excise Act, 1944, interest at the prescribed rate, has to be paid - appeal dismissed - decided against appellant.
Issues:
Short levy of Central Excise duty on sugar clearance, imposition of penalty under Rule 173-Q of Central Excise Rules, 1944, payment of interest by the appellant. Analysis: The appeal was filed against Order-in-Appeal No. 130-CE/LKO/06 dated 16/10/2006, passed by the Commissioner of Central Excise, Service Tax & Customs (Appeals), Lucknow. The appellant had cleared 856.2 MTs of sugar from free sale sugar quota and paid Central Excise duty at a lower rate resulting in a short levy of duty amounting to ?2,82,546/- during December 1997 to March 1998. The appellant paid the said duty in July 2001 after receiving a show cause notice dated 25.11.2002. The Order-in-Original dated 12.08.2005 confirmed the demand, ordered payment of interest, and imposed a penalty of ?1,00,000/- under Rule 173-Q of Central Excise Rules, 1944. The appeal before the Commissioner (Appeals) resulted in the penalty being set aside based on the appellant's timely payment of duty before the show cause notice, citing precedent from the Tribunal and the Apex Court. The appellant's request for adjournment was dismissed, and the learned A.R. presented the case. The Tribunal noted that the duty was paid by the appellant, and the penalty was set aside by the Commissioner (Appeals). The only remaining issue was the payment of interest by the appellant. It was established that interest must be paid when duty is paid late, as per Section 11AB of the Central Excise Act, 1944. Therefore, the Tribunal found no grounds to interfere with the Order-in-Appeal dated 16.10.2006 and dismissed the appellant's appeal. The judgment was dictated in court by the Tribunal members, Mr. Anil Choudhary, Member (Judicial), and Mr. Anil G. Shakkarwar, Member (Technical). This detailed analysis covers the issues of short levy of Central Excise duty, imposition of penalty, and the payment of interest by the appellant, as addressed in the judgment delivered by the Appellate Tribunal CESTAT ALLAHABAD.
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