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TMI Blog2010 (10) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... 2% per month - the respondent paid the duty on 16-4-2003 - The Notification provides that “if the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with interest at the rate of 2% - This provision came into force from 1-4-2003 - Hence, amount of duty paid after the due date shall be liable for interest at the rate of 2% w.e.f. 1-4-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to pay duty by 31st March, 2003. However, the duty has been paid on 16-4-2003. This fact is not in dispute. The Notification 12/2003-C.E. (N.T.), dated 1-3-2003 was issued and it comes in force on 1-4-2003 whereby it has been provided that if the assessee fails to pay the amount of duty by the due date, he shall be liable to pay the outstanding amount along with an interest at the rate of 2% p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature and with effect from 1-4-2003, the interest at the rate of 2% per month or Rs. 1,000/- per day is liable to pay if the manufacturer fails to pay the amount of duty by due date. In the present case, the duty has been paid on 16-4-2004, therefore, the interest was rightly demanded as per Notification 12/2003-C.E. (N.T.), dated 1-3-2003. 5. The respondent submitted that the Notification 12/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any amount of duty paid after the due date shall be liable for interest at the rate of 2% w.e.f. 1-4-2003. The Commissioner (Appeals) relied upon the decision of the Tribunal in the case of Benzo Chem Ind. (P) Ltd. v. CCE, Jalgoan - 2007 (216) E.L.T. 94 (Tri.-Mumbai). The issue before the Tribunal was whether a penalty under Section 11AC of Central Excise Act is imposable or not prior to its intr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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