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TMI Blog2010 (5) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... ts against the order passed by the Appellate Authority has been dismissed. The Joint Commissioner by his order dated 22nd November 2006 had demanded interest amount of Rs. 16,46,831/- and had imposed penalty of Rs. 15,00,000/-. The interest demand was confirmed under Section 11AB of the Central Excise Act. 2. It is the contention on behalf of the appellants that the liability for interest in the case in hand does not arise as there was neither any liability determined under Section 11A (2) nor there was payment in terms of sub-section (2B) of Section 11A so as to demand the interest under Section 11AB. 3. Referring to Section 11AB and drawing our attention to the decision of the Hon'ble Karnataka High Court in the matter of Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Apex Court, wherein the same is pending for final disposal. Meanwhile, the authority demanded payment of interest. The same was sought to be contested by the appellants and finally the order came to be passed by the Adjudicating Authority, which was sought to be challenged by way of an appeal before the Commissioner (Appeals) without any success. 6. Section 11AB(1) provides that 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 the duty as determined under sub-section (2), or has paid the duty under sub-section (2B), of Section 11A, shall, in addition to the duty liable to pay interest at such rate not below 10% and not exceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his own ascertainment of such duty or on the basis of duty ascertained by a Central Excise Officer before service of notice on him under sub-section (1) in respect of the duty, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the duty so paid. 9. Apparently, under sub-section (2) of Section 11A occasion to pay the duty would arise after determination of the same by the Central Excise Officer, whereas such occasion under sub-section (2B) thereof would arise once duty becomes payable even without such determination under the said Act. Sub-section (2) clearly specifies the various instances under which an assessee has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, the provisions comprised under Section 11AB readwith 11A(2B) cannot be allowed to be rendered effectless in relation to the duty liability arising in the course of the adjudication proceedings before the authorities and appropriate steps being taken by the authorities concerned to safeguard the revenue while allowing the assessees to take the benefit of various facilities granted under the statutory provisions to get their rights determined in accordance with the provisions of law. 11. The decision of the Hon'ble Karnataka High Court in Toyota Kirloskar Motors Pvt. Ltd. case was in relation to the issue of bar of limitation raised by the authorities. In that respect, the Hon'ble Karnataka High Court had observed that : "It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plain reading of the judgment of the Hon'ble Karnataka High Court, therefore, would disclose that the question which had arisen in that case was relating to the issue regarding bar of limitation sought to be raised in the absence of any adjudication under sub-section (2) of Section 11A. That is not the case in the matter in hand. The judgment does not disclose analysis of the provisions of law comprised under Section 11AB readwith Section 11A (2B) of the said Act, as such, but reference to the provisions of law has been made to deal with the questions which were raised in the peculiar facts and circumstances of the case. 14. For the reasons stated above, therefore, prima facie, we find that the appellant has made out the case as rega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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