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TMI Blog2009 (4) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... nd paid the same to the Department under invoices dated 21-3-2005. Subsequently the authorities scrutinized the records of the appellants and after due process of law demanded interest of Rs. 2,62,291/- for the delay in payment of the differential duty with reference to the respective dates of clearance during the material period. The impugned order affirmed the demand of interest of Rs. 2,62,291/- made by the original authority under Section 11AB of the Central Excise, 1954. In the appeal filed before the Tribunal it is argued that at the time of clearance of the impugned goods there had been no short-levy, short-payment, non-levy or non-payment of duty. The liability of additional duty arose on a future date when the books of accounts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase law cited by the appellants were not relevant to the case on hand. 3. I have carefully considered the case records and the rival submissions by both sides. Section 11AB reads as follows :- (1) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay duty as determined under sub-section (2), or has paid the duty under sub-section 2(B), of Section 11 A, shall, in addition to the duty, be liable to pay interest at such rate .... Sub-section (2B) of Section 11A reads as follows :- (2B) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person, chargeable with the duty, m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee cannot argue that the interest liability arose in respect of an amount they had not received. The interest liability did not arise on account of a price revision made by the buyer of the goods; the interest is on account of delay in payment of the dues to the Department by deferring which the financial accommodation was enjoyed by the assessee/its sister unit. 5. I find that the case law relied on by the appellants related to cases of disputed demand of interest on amounts received under supplementary invoices or, cases relating to the period prior to 11-5-2001 when interest was payable in cases of demands for short-payment/non-payment on account of fraud, collusion, suppression of facts etc. None of the case law relied on by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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