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TMI Blog2015 (9) TMI 1376X X X X Extracts X X X X X X X X Extracts X X X X ..... tic. The appellants having availed and utilized the credit for payment of excise duty which is due to the govt. interest is leviable for which no notice is required. - interest is payable on the amount already confirmed and upheld by the Tribunal which was belatedly paid only after the Tribunal's order. Accordingly, the impugned order is upheld - Decision in the case of CCE & C Aurangabad Vs Padmashri V.V.Patil S.S.K. Ltd. [2007 (7) TMI 6 - HIGH COURT, BOMBAY] followed - Decided against assessee. - Appeal No. E/549/2008 - Final Order No. 40677/2015 - Dated:- 26-6-2015 - Hon ble Shri R. Periasami, Technical Member,J. For the Appellant : Shri S. Murugappan, Advocate For the Respondent : Shri M. Rammohan Rao, DC (AR) ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the demand relates to denial of cenvat credit under CCR and the relevant provisions applicable for reversal of cenvat credit is provided under Rule 57I of CCR. When the recovery of irregular credit made under CCR, the interest cannot be demanded under Section 11AA as it is not a demand made under Section 11A of Central Excise Act. He further submits that Commissioner (Appeals) has gone beyond the scope of SCN and also submits that allegations made in the show cause notice in paras 2 5 of the SCN are contrary. He further submits that reversal of credit was confirmed in the year 1999 to 2000 and if at all any interest is to be demanded, it should be made within one year. Limitation of time is applicable to demand of interest under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stified for the reason that Sub-Rule (3) of Rule 57I and Sub-Rule (8) of Rule 57U of CER clearly stipulates the recovery of interest where the appellant ails to pay amount determined within 3 months from the date of order the interest shall be payable as per Section 11AA of CEA. By virtue of the above provision of Rule 57(I) and Rule 57(U), Section 11AA is made applicable for demand of interest in recovery of modvat cases. 7. Further, I find that once the demand is confirmed and the same is upheld by the higher Appellate Forum the interest is automatic. The appellants having availed and utilized the credit for payment of excise duty which is due to the govt. interest is leviable for which no notice is required. 8. Further, it is relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar as interest u/s. 11AB is concerned, on reference to text of Section 11AB, it is evident that there is no discretion regarding the rate of interest. Language of Section 11AB(1) is clear. The interest has to be at the rate not below 10% and not exceeding 36% p.a. The actual rate of interest applicable from time to time by fluctuations between 10% to 36% is as determined by the Central Government by notification in the Official Gazette from time to time. There would be discretion, if at all the same is incorporated in such notification in the gazette by which rates of interest chargeable u/s. 11AB are declared. The second aspect would be whether there is any discretion not to charge the interest u/s. 11AB at all and we are afraid, langua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir appeal before this Tribunal and accepted the Tribunal order. It is evident that the appellants have availed the credit and also utilized the same for payment of excise and enjoyed the amount which is due to the Govt. By virtue of wordings used in Rule 57I (3) and Rule 57U(8) the interest is automatic and shall be payable even if no notice issued. 10. In view of foregoing discussions, and by respectfully following the Hon'ble High Court above decision(supra), I hold that the interest is payable on the amount already confirmed and upheld by the Tribunal which was belatedly paid only after the Tribunal's order. Accordingly, the impugned order is upheld and the appeal is rejected. (Pronounced in open court on 26.06.2015) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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