COMMISSIONER OF CENTRAL EXCISE Vs. FENNER INDIA LTD.

JUDGEMENT

(1.) THIS appeal of the Revenue is against an order of the Commissioner (Appeals) vacating a penalty imposed on the respondents by the original authority under Section 11AC of the Central Excise Act. Against the same order of the appellate authority imposing a penalty under Rule 173Q besides sustaining demand of duty confirmed by the original authority, the assessee had filed an appeal (No. E/1506/04) and this Bench disposed it of as per Final Order No. 1145/2005, dated 23 -8 -2005. In the said Final Order, it was, inter alia, held that no penalty was imposable on the assessee as held by the Tribunal in the case of Rashtriya Ispat Nigam Ltd. 2003 (54) RLT 317 affirmed by the Hon'ble Apex Court [2004 (163) E.L.T. A53 (S.C.)]. Thus the question whether any penalty was imposable on the respondents under Section 11AC of the Act is already covered against the Revenue by the above Final Order.

(2.) ANOTHER relief prayed for in the present appeal is interest under Section 11AB on the duty paid by the respondents prior to issuance of show cause notice. This claim for interest is on the following ground:

(3.) LD . SDR has reiterated the above ground and ld. Counsel has submitted that Sub -section (2B) of Section 11A and the 'explanations' thereto, which were inserted in the statute with effect from 11 -5 -2001, are not applicable to the present case wherein the period dispute is November, 1997 to May, 1998. This submission of ld. Counsel has not been contested. In the facts and circumstances, the above ground raised by the appellant for levying interest from the respondents on the amount of duty paid by them before issuance of show cause notice cannot be sustained. The appeal fails and the same is rejected.