Appellant wins appeal on interest payment timing in tax assessment

The judgment ruled in favor of the appellant, stating that interest is payable only after finalization of assessment, not during provisional assessment, as per Rule 7(4) of the Central Excise Rules, 2002. The impugned order was set aside, and the appeal was allowed with consequential relief if any.

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Issues involved:
The issue involved in the judgment is regarding the payment of interest u/s Rule 7(4) of the Central Excise Rules, 2002, specifically whether interest is payable after finalization of assessment or when duty was paid during provisional assessment.

Summary:

Issue 1: Payment of interest during provisional assessment
The appeal challenged the rejection of the assessee's prayer that interest should be charged after finalization of assessment, not during provisional assessment. Both authorities held that interest is payable from provisional assessment. The appellant relied on judgments including Super Tax Labels Pvt Ltd. Vs. CC., Bangalore and others. The learned Counsel argued that interest is payable only after finalization of assessment, not during provisional assessment. The learned DR reiterated the lower authorities' findings. The Member Judicial found that interest is payable only after the expiry of one month from the date when the amount is determined u/s Rule 7(4) of the Central Excise Rules, 2002. The impugned order was set aside, and the appeal was allowed with consequential relief if any.

Conclusion:
The judgment ruled in favor of the appellant, stating that interest is payable only after finalization of assessment, not during provisional assessment, as per Rule 7(4) of the Central Excise Rules, 2002.

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