Before 11.5.2001 After 11.5.2001
Sec.
11AB Interest on delayed payment of Interest on delayed payment of duty -
duty: (1) Where any duty of excise has not
(1) Where any duty of excise been levied or paid or has been short-
has not been levied or paid or has levied or short-paid or erroneously
been short levied or short paid or refunded, the person who is liable to
erroneously refunded by reason of pay the duty as determined under Sub-
fraud, collusion or any wilful Section (2), or has paid the duty under
misstatement or suppression of Sub-Section (2B), of Section 11A, shall,
facts or contravention of any of in addition to the duty, be liable to
the provisions of this Act or the pay interest at such rate not below ten
rules made thereunder with intent per cent and not exceeding thirty-six
to evade payment of duty, the per cent per annum, as is for the time
person liable to pay duty as being fixed by the Central Government,
determined under Sub-Section (2) of by notification in the Official Gazette,
Section 11A shall, in addition to from the first date of the month
the duty be liable to pay interest succeeding the month in which the duty
at such rate not below eighteen per ought to have been paid under this Act,
cent and not exceeding thirty six or from the date of such erroneous
per cent per annum, as is for the refund, as the case may be, but for the
time being fixed by the Central provisions contained in Sub-Section (2),
Government, by notification in the or Sub-Section (2B), of Section 11A till
Official Gazette, from the first the date of payment of such duty :
day of the month succeeding the Provided that in such cases where
month in which the duty ought to the duty becomes payable consequent to
have been paid under this Act or issue of an order, instruction or
the Rules made thereunder or from direction by the Board under section
the date of such erroneous refund, 37B, and such amount of duty payable is
as the case may be, but for the voluntarily paid in full, without
provisions contained in Sub-Section reserving any right to appeal against
(2) of Section 11A, till the date such payment at any subsequent stage,
of payment of such duty. within forty-five days from the date of
(2) For the removal of the issue of such order, instruction or
doubts, it is hereby declared that direction, as the case may be, no
the provisions of Sub-Section (1) interest shall be payable and in other
shall not apply to cases where the cases the interest shall be payable on
duty became payable before the date the whole of the amount, including the
on which the Finance (No.2) Bill, amount already paid.
1996 receives the assent of the (2) The provisions of Sub-Section
President. (1) shall not apply to cases where the
Explanation 1 - Where the duty had become payable or ought to have
duty determined to be payable is been paid before the date on which the
reduced by the Commissioner Finance Bill, 2001 receives the assent
(Appeals), the Appellate Tribunal of the President.
or, as the case may be, the court, Explanation 1 - Where the duty
the interest shall be payable on determined to be payable is reduced by
such reduced amount of duty. the Commissioner (Appeals), the
Appellate Tribunal (National Tax
Explanation 2 - Where the Tribunal) or, as the case may be, the
duty determined to be payable is court, the interest shall be payable on
increased or further increased by such reduced amount of duty.
the Commissioner (Appeals), the Explanation 2. - Where the duty
Appellate Tribunal or, as the case determined to be payable is increased or
may be, the court, the interest further increased by the Commissioner
shall be payable on such increased (Appeals), the Appellate Tribunal
or further increased amount of (National Tax Tribunal) or, as the case
duty. may be, the court, the interest shall be
payable on such increased or further
increased amount of duty.
22. A careful look at the tabulation above would show that
the distinction between the two categories of cases that was
maintained upto 11.5.2001 disappeared to some extent by the
amendment inserted from 11.5.2001. Though a small distinction
was still retained, the liability to pay interest became common
for both categories of cases and a distinction was retained only
in respect of the minimum ratio of interest and the date of
commencement of liability post 11.5.2001. In cases where the
payment was made voluntarily after determination of the amount
