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TMI Blog2017 (2) TMI 1167X X X X Extracts X X X X X X X X Extracts X X X X ..... ot apply in case of recovery of interest. Section 11AA provides for charging the interest - the demand of interest upheld. Imposition of penalty u/r 25(1) of the CER, 2002 - Held that: - appellant had the bona fide belief that the interest is not chargeable once the proceedings for the interest for the same period has been dropped in the earlier proceedings - the imposition of penalty of ₹ 20,000/- is not correct. Appeal disposed off - decided partly in favor of appellant. - E/2424/06 - A/85766/17/EB - Dated:- 8-2-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) None for Appellant Shri Ashutosh Nath, AC (AR) for Respondent ORDER Per Ramesh Nair The issue involved in the presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. Subsequently, the Range Superintendent vide letter dated Nil March, 2003 directed the appellant to pay the interest under Section 11AA within 7 days. The appellant approached the Dy. Commissioner to pass a speaking order. The Dy. Commissioner vide his letter dated Nil July, 2003 directed the assessee to pay the duty and interest immediately and stated that there is no provisions under the Act for passing an appellable speaking order in respect of recovery of interest under Section 11AA. Challenging the said letter, the appellant filed an appeal before the Commissioner (Appeals), who vide Order-in-Appeal No. P-III/210/04 dated 22.11.2004 set aside the directions given by the Dy. Commissioner and the Range Superintendent had directed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overable particularly when in the earlier show-cause notice, the same interest was demanded under Section 11AB and the same was dropped for a part period as Section 11AB was not existing prior to 28.9.1996. We find that before 28.9.1996, the interest was chargeable under Section 11AA. Though initially it was proposed under Section 11AB but subsequently by issuance of fresh show-cause notice, the interest was demanded under Section 11AA. There is no restriction that as regards recovery of interest once the show-cause notice was issued, another show-cause notice cannot be issued. Limitation does not apply in case of recovery of interest. Section 11AA provides for charging the interest. In our view, even though the adjudication proceedings suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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