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TMI Blog2008 (1) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 28-9-1996 where the short levy or short payment had occurred by reason of fraud, collusion or willful mis-statement etc. The only difference between the provisions of Section 11AB that existed prior to 11-5-2001 and the one introduced with effect from 11-5-2001 is that while the present Section 11AB provides for recovery of interest in all the cases of short payment or erroneous refund, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se 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 inapplicable to the period prior to 11-5-2001 when Section 11AB was substituted. The relevant para of the Tribunal's order is reproduced below :- "We have gone through the records of the case carefully. The only point at issue is demand of interest under Section 11 AB for the period prior to its substitution for the year 2001. We are reproducing the Section 11 AB after substitution in 2001. "Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Government, Section 6A of the General Clause Act does not save the provisions which were substituted. Hence, the Commissioner's (Appeals) conclusion that the lower authority was empowered to demand interest under the repealed Section 11AB till 10-5-2001 is not correct. We are reproducing the Section 6A of the General Clause Act below :- "6A. Repeal of Act making textual amendment in Act or Regulation. - W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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