9911796707
TMI Blog2003 (12) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... d to M/s. Venus Industries for demanding the duty for the period from 1-3-86 to 13-8-88 as they had wrongly availed of the small scale exemption benefit under Notification No. 175/86-C.E.; that the matter was adjudicated by the Collector under Order-in-Original No. 26/92, dated 23-4-92, by which he confirmed the demand of duty of Rs. 10,50,165.76 and penalty of Rs. 50,000/- was imposed; that, however, on appeal, the appellate Tribunal, vide Final Order No. 384/2000-B, remanded the matter to the Commissioner for consideration of the applicability of the Proviso (b) to Para 4 of the Notification No. 175/86; that the Commissioner, in de novo proceedings under Order-in-Original No. 45/2001 dated 28-11-2001, has denied the benefit of small scale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as paid on 12-12-2002 and, accordingly, they are required to pay interest for the period from 26-8-95 to 11-12-2002. Reliance has also been placed on the decision in the case of C.C.E., Bhubaneswar-II v Orissa Concrete Products (India) Pvt. Ltd., 2001 (133) E.L.T. 787 (Tri.-Kolkata), wherein the Tribunal has held that the Provision of Section 11AA clearly shows that for the arrear cases pending for recovery before the enactment of Finance Act, 1995 if the defaulter fails to pay the duty within a period of three months from the date of enactment, he shall be liable for payment of interest. 3. Countering the arguments, Sh. J.P. Kaushik, learned Advocate, submitted that the demand of Central Excise duty was confirmed against the respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larified that the net effect of the judgment in the case of M.P. Tapes is that Section 11AB of the Central Excise Act can be invoked only in respect of clearances effected after 28-9-96 irrespective of the date of passing of the adjudication order; that similarly, the interest under Section 11AA can only be demanded in respect of clearances effected after Section 11AA was inserted in the Central Excise Act. 4. We have considered the submissions of both the sides. Section 11AA of the Central Act, which came into effect from 26-5-1995 provides for payment of interest if a person fails to pay the duty as determined under sub-section (2) of Section 11A of the Act within three months from the date of such determination. A show cause notice und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11AA if any person fails to pay the duty determined against him under Section 11A(2) of the Act. We, therefore, hold that the respondents, in the present matter, are liable to pay the interest under Section 11AA of the Act as they have not paid the duty determined against them within three months of the determination. However, we find that the duty has been finally determined under Section 11A(2) of the Act only by the Commissioner under Order-in-Original No. 45/01, dated 28-11-2001 and not before the said date. The entire payment of duty has been made by 12-12-2002. Thus, the interest under Section 11AA will be payable by the respondents on the duty after three months from the date of determination of the duty i.e. 28-11-2001 to 12-12-2002 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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