Customs, Excise and Gold Tribunal - Bangalore
Karnataka Soaps And Detergents Ltd. vs Commr. Of C. Ex. on 24 August, 2005
Equivalent citations: 2005(190)ELT103(TRI-BANG)
ORDER T.K. Jayaraman, Member (T)
1. This ROM application, has been filed in respect of the Final Order No. 855-856/2005, dated 1-6-2005 [2005 (192) E.L.T. 892 (T)].
2. Ld. Counsel Shri G. Shivadass, while appearing for the appellants contended that in the above Final Order, the Tribunal while confirming that Central Excise duty amounting to Rs. 2,52,45,268/- has upheld the demand of interest inspite of the fact that the duty was paid much before the issue of show cause notice. He stated that it is now well settled law that interest under Section 11AB is not payable if the duty is paid before the issue of show cause notice. He relied on the following decisions :-
(a) CCE v. Machine Montell - 2004 (62) RLT 709
(b) CCE v. Shree Krishna Pipe Industries -
(c) Rashtriya Ispat Nigam Ltd. v. CCE - affirmed by the Apex Court - 2004 (163) E.L.T. A53 (S.C.).
Ld. Counsel submits that the Tribunal has been following the ratio of the above decisions consistently where the duty has been paid before the issue of show-cause notice. In this regard he relied on one such Final Order No. 891-897/05, dated 14-6-2005 passed in the case of Murugarajendra Oil Industries and Ors.. The non-consideration of the well settled position in law by the Tribunal is a mistake apparent on the face of the record as held by the Tribunal in the case of Richardson & Cruddas Ltd. v. CCE . Hence he prays the Bench to rectify the error. Shri Ramakrishnappa, Id. SDR fairly concedes to the appellants' view.
3. We have gone through the records of the case carefully. The fact that the duty has been paid before the issuance of show cause notice, is not under dispute. Hence there is merit in the contention of the ROM. This Tribunal also has been consistently holding that when duty is paid before the issue of show-cause notice no interest and penalty can be levied. Hence, we allow the ROM by making the following amendment in para 9 of the said Final Order. The sentences "we also uphold the demand of interest. The interest has also been paid. In view of the above finding the appeal No. E/248/05 is dismissed" may be deleted and substituted "As the duty has been paid before the issue of show cause notice, no interest is leviable in view of the decided case law on the subject. Hence the appeal No. E/248/05 is partly allowed."
(Pronounced and dictated in open Court)