COMMR.OF CEN.EXCISE vs M/S INTERNATIONAL AUTO LTD.

The Supreme Court interpreted Section 11A of the Central Excise Act, clarifying the distinction between cases of non-payment due to oversight and those involving fraud or deceit. It held that under sub-section (2B), an assessee can make amends by paying the unpaid duty before a notice is served, but interest under Section 11AB is still applicable. The Court upheld the Bombay High Court's view that timely payment of differential duty negates the application of penalties under Section 11A(2B) and Section 11AB, affirming the importance of prompt compliance in excise duty matters.