Customs, Excise and Gold Tribunal - Calcutta
M/S. T.E.L. Co. vs C.C.E., Jamshedpur on 8 February, 2001
ORDER
Archana Wadhwa
1. The present Miscellaneous Application is for rectification of mistake said to have been crept in Order No.A-727/Cal/99 dated 23.7.99 vide which duty was confirmed against the appellants but penalty was set aside. However, it is the grievance of the appellant duly represented by Shri V. Sridharan, learned Advocate that their plea as regards the setting aside of that portion of the impugned order which dealt with the interest under the provisions of Section 11AB has not been dealt by the Tribunal.
2. After hearing both sides we find that Tribunal in the present matter has not passed any order on the interest portion of the impugned order. Accordingly, we add the following paragraphs in the said Order:
"5. The appellant's contention is that the period involved in the present appeal was from 1.4.1989 to 30.6.1995 and the provisions of Section 11AB was introduced w.e.f. 28.9.96. As such, they cannot be given retrospective effect and the Commissioner's order to pay interest as per Section 11AB at the applicable rates is erroneous. Shri V. Sridharan submits that it is well settled that Section AB does not have any retrospective effect. Accordingly, he prays for setting aside that portion of the order. In support of his above submission he relies upon the Tribunal's decision in Marcandy Prasad Radhakrishna Prasad Pvt. Ltd. vs. C.C.E., Calcutta-II - 1998 (25) RLT 919 (CEGAT). The said decision has since been confirmed by the Hon'ble Supreme Court. The reference has also been made to the Tribunal's decision in the case of Maruti Udyog Ltd. vs. C.C.E. - 1998 (25) RLT 246 (CEGAT).
6. After hearing the learned SDR we agree with the above submission of the learned Advocate that it is well settled by a catena of judgements that provisions of Section 11AB are leviable in respect of the demand of duty on or after 1996 and the same the same do not have any application for the demand relatable to the prior period. Accordingly, we also set aside that portion of the impugned order vide which the appellants were directed to pay interest in terms of Section 11AB."
3. The Miscellaneous Application is allowed in the above terms.
(Dictated & pronounced in Court)