COMMISSIONER OF CENTRAL EXCISE Vs. MOULDERS INDIA

JUDGEMENT

(1.) THIS appeal is filed by the Revenue against the setting aside of the Order -in -Original, wherein interest under Section 11AB of the Central Excise Act, 1944 was confirmed and a penalty of Rs. 5000/ - under Rule 27 was imposed.

(2.) NONE appeared for the respondent. However, the respondent preferred to file written submissions, which are taken on record. The learned DR appeared on behalf of the Revenue. He relied on Commissioner of Central Excise, Pune v. SKF India Ltd., 2009 TIOL 82 SC -CX wherein the Hon'ble Apex Court has held that interest is leviable on delayed payment of duty for whatever reasons. In that event, he submitted that the impugned order be set aside. With regard to the penalty, he submitted that in the case of UOI v. Rajasthan Spinning & Weaving Mills : 2009 (238) ELT 3 (SC) the Apex Court has held that if the duty demand is confirmed, the mandatory penalty equal to the duty demand is to be imposed.

(3.) I have gone through the written submissions. I find that the Apex Court in the case of SKF India Ltd. (supra) has held that interest is leviable on delayed payment of duty for whatever reasons. Accordingly, the demand of interest is confirmed.