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TMI Blog2013 (10) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the demand is confirmed after quantification under sub-rule (1)(iii) or the amount is paid under sub-rule (2), the assessee is required to pay interest as per the provisions of sub-rule (3) read with Section 11AA of the Act - Where an amount is determined under sub-rule (1)(iii) or the amount demanded has been paid under sub-rule (3), the interest is to be paid - even if the duty amount was paid, the provisions of sub-rules (1) & (3) of Rule 57I would be attracted - in earlier proceedings, the appellant had challenged the liability before the Tribunal and the Tribunal dismissed the appeal - The consideration of the statutory provisions reveals that once the duty amount is paid, the interest becomes payable and whether duty is determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion of payment of interest does not arise. 3. We have considered the submissions made by the both sides. We have perused the Rule 57-I (1) (3) which is reproduced below : (1) (i) Where credit of duty paid on inputs has been taken on account of error, omission or mis-construction, on the part of an officer or a manufacturer, or an assessee, the proper officer may, within six months from the date of filing the return as required to be submitted in terms of sub-rule (8) of Rule 57G, and where no such return is to filed under the said rule, serve notice on the manufacturer or the assessee who has taken such credit requiring him to show cause why he should not be disallowed such credit and where the credit has already been uti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the notice of demand. (3) Where a manufacturer or an assessee fails to pay the amount determined under sub-rule (1) or sub-rule (2) within three months from the date of receipt of demand notice, he shall pay, in addition to the amount so determined, interest at such rate, as may be fixed, by the Central Board of Excise and Customs under section 11AA of the Act, from the date immediately after the expiry of the said period of three months till the date of payment. From the above, it can be seen that Rule 57-I (1)(ii) envisages a situation where demand is to be raised by the department within six months or within five years as the case may and sub-rule (1)(iii) provides that the proper officer to determine the liability. Sub-rule (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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