GENERAL METALLISERS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides. This is an application to stay the implementation of the impugned order passed by the Commissioner (Appeals), Central Excise & Customs. The appellant herein were engaged in the manufacture of metallised aluminum paper. They have availed Modvat credit for Rs. 98,655/ - vide RG 23 Pt. HE No. 122, dated 4 -8 -1990 on the input, viz. evaporation boats on the strength of bill of entry No. 006619, dated 18 -7 -1990 under Rule 57 of Central Excise Rules, 1944. The department alleged that this credit was not admissible to the appellant. The show because notice was issued on 5 -2 -1991 demanding duty and the same has been confirmed vide order -in -original No. 50/1991, dated 8 -4 -1991. Since the appellant did not dispute the payment of duty, they have not chosen to file an appeal but paid the confirmed duty demand lately on 18 -10 -2002. Thereafter the department has been addressing letters to pay the interest amount of Rs. 1,20,606/ - under Section 11AA of the Central Excise Act, 1944 for the delayed payment of duty amount. The appellant has suitably replied stating that the order -in -original do not contemplate or provide for payment of interest nor there was such an allegation in the show cause notice etc. Further their contention is that the period of dispute and confirmation of the demand much prior to the introduction of Section 11AA which has come into force on 26 -5 -1995. According to them mere payment of confirmed duty subsequent to the introduction of the interest clause in the Central Excise Act does not give rise cause of action to the department to claim interest on such delayed payment. In this context, Id. Counsel for the appellants also relied upon the following decisions of the tribunal:

(2.) KOZY Silks Pvt. Ltd. v. Commissioner of Customs (Exports), Chennai : 2005 (190) E.L.T. 28 (Tri. -Bang.)

(3.) HINDUSTAN Adhesives Ltd. v. CCE, Ghaziabad, 2004 (178) E.L.T. 931 (Tri. - Del.)