9911796707
TMI Blog2008 (6) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... is partly allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... mined under sub-section (2) of Section 11A was set aside by the appellate forum that decision amounted to an other determination of the duty due in terms of the said sub-section (2) of Section 11A which reduced the duty due to 'nil'. Also, if appellate forum higher to that authority restored the original demand that was a determination of duty under Section 11A (2) raising the liability from 'nil' to the original amount. Therefore, reading Explanations 1 and 2 in the above perspective, the appellant was liable to pay interest only for the period of delay beyond three months from the judgment of the Apex Court in the instant case. 2. Yet another argument raised consistently before the lower authorities by the appellant is that pre-deposit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed after they obtained a favourable order-in-appeal. 3. Ld. SDR submits that the Explanations 1 and 2 to Section 11AA lay down the period for which interest is payable on a duty demand when the initial determination of duty liability is varied in the orders-in-appeal passed at various higher stages in the judicial hierarchy. In the instant case there has been determination of duty liability only at a single stage i.e. by the original authority. Subsequent appeals by either party were disposed of by the appellate fora deciding the issue whether the appellants was eligible for the benefit of the exemption Notification. There was no determination or revision of duty liability at any stage after the decision of the original authority. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is reduced by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, the court, the date of such determination shall be the date on which an amount of duty is first determined to be payable. Explanation 2.-Where the duty determined to be payable is increased or further increased by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, the court, the date of such determination shall be,- (a) for the amount of duty first determined to be payable, the date on which the duty is so determined, (b) for the amount of increased duty, the date of order by which the increased amount of duty is first determined to be payable; (c) for the amount of further increase of duty, the date of order on which the duty is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is refunded with delay. As regards the delayed grant of rebate, Section 11B provides that when refund of the duty paid is delayed beyond three months of the claim, interest has to be paid at the prescribed rate. In the ITC case (supra) apex Court directed payment of interest @ of 12% per annum. Following the said judgment, it is ordered that the interest on pre-deposits shall be allowed to FFL at the rate of 12% per annum for the periods beyond the respective orders of the appellate authority in favour of the appellant. Therefore the appellants succeed as regards the interest on pre-deposit amounts and the rebate amount. The original authority shall quantify the interest liability of FFL in the above terms. The appeals are thus partly allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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