9911796707
TMI Blog2008 (1) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... ri S. P. Mathew, DR, for the Respondent. [Order] - According to the Revenue an error apparent on record arises in Tribunal's Final Order No. A-1253/ C.IV/ SMB/2007 dated 23-8-07 [2007 (218) E.L.T. 290 (T)] in setting aside the levy of interest under the provisions of Section. 11AB of the Central Excise Act and Rule 57-I (5) of the Central Excise Rules, 1944. The ground raised in the application is as under (a) It is true that going by the language of Section 11AB that has been substituted with effect from 11-5-2001, no interest can be recovered on the duty that has become payable prior to 11-5-2001. But as per the provisions of Section 11 AB that existed prior to this date, recovery of interest was very much possible with effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8A of the CEA, 1944 read with Section 132 of the Finance Act, 2001 (14 of 2001) upholds the validity of any action taken under any of the Rules, notifications or order at any time .even if the said Rules, Notifications or orders are repealed, amended, rescinded or superseded. 2. I have heard both sides. The reliance placed by the Revenue on the provisions of Section 38A of the Central Excise Act, 1944 read with Section 132 of the Finance Act, 2001 is misplaced, in the light of the Tribunal's order in Union Air Products (P) Ltd. v. CCE, Kochi [2006 (206) E.L.T. 432]. In that case, the Tribunal has held that the intention of the Government expressed in sub-section 2 of Section 11AB of the Central Excise Act, 2001, is to make it inappl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l against such payment at any subsequent stage, within forty five days from the date of issue of such order, instruction or direction, as the case may be, no interest shall be payable and in other cases the interest shall be payable on the whole of the amount, including the amount already paid. (2) The provisions of sub section (1) shall not apply to cases where the duty had become payable or ought to have been paid before the date on which the Finance Bill, 2001 receives the assent of the President." What is the purpose of the proviso in the above Section? As per the proviso it is very clear that the provisions of sub-section (1) of Section 11AB will not be applicable to the period prior to 2001. Since that is the intention of the Gove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egards penalty there was no serious challenge by the learned Advocate. Hence the same is upheld" 3. The above judgment answers the contention raised by the Revenue in respect or Section 11AB. As for Rule 57I (5) the Tribunal's order in the case of Ruby Mills Ltd. v. CCE, Raigad [2007 (217) E.L.T. 245] in the context of Cenvat/Modvat when the demand was raised prior to 11-5-2001 settles the issue by setting aside the recovery of interest under Section 11AB of the Central Excise Act. The ratio of this judgment would apply with all fours in the context of Rule 57-I(5). 4. As the points urged by the Revenue in the ROM application stands settled against them by Tribunal's orders cited supra, there is no merit in the application is ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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