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TMI Blog2015 (3) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon’ble Supreme Court in the case of CCE, Pune Vs. SKF Ltd. (2009 (7) TMI 6 - SUPREME COURT ) has held that interest is payable under Section 11AB. - Decided in favour of Revenue. - Appeal No. E/1082/2005 - Final Order No. 41070 / 2015 - Dated:- 27-3-2015 - SHRI R. PERIASAMI, TECHNICAL MEMBER For the Petitioner : Shri B. Balamurugan, Ac (AR) For the Respondent : Ms. Minchu Mariam Punnose, Advocate ORDER Revenue has filed this appeal against the order of the Commissioner (Appeals) dated 24.8.2005. 2. The brief facts of the case are that the respondents are manufacturers of MS ingots falling under Chapter 720690. An offence case was registered against the respondents for clandestine removal of the finished goods with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to have been paid as per Section 11AB. He relied on the decisions of the Hon ble Supreme Court in the cases of Commissioner of Trade Tax, Lucknow Vs. Kanhai Ram Thekedar - 2005 (185) ELT 3 (SC) and CCE, Pune Vs. SKF India Ltd. -2009 (239) ELT 385 (SC). 4. On the other hand, the learned counsel for the respondent reiterated the findings of the learned Commissioner (Appeals) and submits that there is no intention to evade payment of duty and also Revenue has not appealed against the Order-in-Original passed by the adjudicating authority on the reduced penalty. Since they have paid the entire dues before issue of show-cause notice, the Commissioner (Appeals) has rightly set aside the penalty and interest. 5. I have heard both sides and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. Sub-section (2B) of Section 11A provides that the assessee in default may, before the notice issued under sub-section (1) is served on him, make payment of the unpaid duty on the basis of his own ascertainment or as ascertained by a Central Excise Officer and inform the Central Excise Officer in writing about the payment made by him and in that event he would not be given the demand notice under sub-section (1). But Explanation 2 to the sub-section makes it expressly clear that such payment would not be exempt from interest chargeable under Section 11AB, that is, for the period from the first date of the month succeeding the month in which the duty ought to have been paid till the date of payment, of the duty. What is stated in Explan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d revision of prices of goods sold earlier. In M/s. Rucha Engineering the High Court observed as follows: It is evident that the Section (11AB) comes into play if the duty paid/levied is short. Both, the Commissioner (Appeals) and the CESTAT have observed that the Assessee paid the duty on its own accord immediately when the revised rates became known to them from their customers. The differential duty was due at that time i.e. when the revised rates applicable with retrospective effect were learnt by the Assessee, which was much after the clearance of the goods and therefore, question of payment of interest does not arise as the duty was paid as soon as it was learnt that it was payable. Finding that provisions of Section 11A (2) and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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