No interest on differential duty when paid before final assessment under Rule 7(4) and Section 11AB(2B)

HC upheld CESTAT's decision that the assessee is not liable to pay interest on differential duty under Rule 7(4) of the Central Excise Rules, 2002 read with Section 11AB(2B) of the Central Excise Act, 1944. The HC noted that interest is chargeable from the first day of the month succeeding the month for which the duty becomes payable until the date of payment, as determined in final assessment. Since the assessee paid the entire differential duty before final assessment, no interest was leviable. The revenue's appeal was accordingly disposed of.

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The Bombay High Court judgment in 2010 ruled in favor of the respondent, stating that interest on differential duty is not payable if duty is paid before final assessment, as per Rule 7(4) of Central Excise Rules, 2002. The appeal was disposed of with no costs.

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