2006 (4) TMI 402

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..... for the Respondent. [Order]. - In this appeal, filed against the order passed by the Commissioner (Appeals), the department is aggrieved by: (a) Grant of Modvat credit on protective coatings to the respondents, (b) Non-levy of interest on the amount of Modvat credit denied to them, and (c) Non-imposition of penalty on the respondents under Rule 173Q of the Central Excis .....

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..... ellant is entitled for Modvat on all the items except on light fittings and protective coatings for reasons discussed supra . 3. The show cause notice did not expressly invoke Section 11AA of the Central Excise Act for levying interest from the assessee on inadmissible Modvat credit amounts. The original authority held that the assessee was liable to pay interest on such amounts in terms of Sect .....

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..... arned counsel has raised a more fundamental contention, which is to the effect that Section 11AA is not applicable to the facts of this case. After consulting the provisions of Section 11AA, I accept this contention. Sub-section (2) of Section 11AA reads as under :- The provisions of sub-section (1) shall not apply to cases where the duty becomes payable on and after the date on which the Finan .....

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