CCE Vs. FENNER (INDIA) LTD.

JUDGEMENT

(1.) The appeal by revenue is directed against Order -in -Appeal No. 19/99 (M -II) dated 25.1.1999 by which the Ld. Commissioner (Appeals) has held that since the demands pertain to the period 1991 - 1993 which is prior to insertion of Section 11AB, which was inserted on 28.9.1996, therefore interest under Section 11AB cannot be demanded in view of the provisions of Section 1 1AB (under Sub -section (1) and (2) of the Central Excise Act, 1944.

(2.) DR Shri A. Jayachandran invited my attention to the ground of appeal and submits that since the adjudication was done by the Additional Commissioner on 24.10.1997, that is to say, after the enactment of Section 11AB, the proviso to Section 11AB shall apply to cases which are adjudicated after the receipt of the President's ascent and Section 11AB will apply to such cases where duty under Section 1 1A(2) is determined on or after the said date. Fie further submitted that even to the past cases where duty under Section 1 1A(2) is determined on or after the said date, the provisions of Section 11AB would apply. He therefore submitted that the order of the Ld. Commissioner (Appeals) may be set aside and the order of the lower adjudicating authority may be restored.

(3.) Shri R. Ramakrishnan, Manager (Accounts) appearing on behalf of the respondent assessee, Fenner (India) Limited, submits that provisions of both Sections 1 1AB and 11 AC of Central Excise Act, 1944 being prospective in nature are not applicable to demand of duty evaded prior to coming into force of these provisions. In this connection he invited my attention to the judgement rendered by the Hon'ble Supreme Court in the case of CCE, Coimbatore v. Elgi Equipments Ltd. as reported in 2001 (128) ELT 52 (SC). He also invited my attention to the judgements rendered by the Tribunal in the case of Boisur Chemicals (P) Ltd. v. Commissioner as ; Dhanniwala Textiles (P) Ltd. v. Commissioner as and Maruti Udyog Ltd. v. Commissioner as . He therefore submitted that the order passed by the Ld. Commissioner (Appeals) requires to be sustained and appeal filed by the revenue may be rejected.