Tribunal orders interest pre-deposit, citing timely cause of action.

The Tribunal ruled against the applicant, directing them to pre-deposit the entire interest amount within eight weeks due to non-establishment of grounds for a 100% waiver of pre-deposit. The Tribunal found the demand for interest valid as the cause of action arose when the differential duty was paid in January 2009, leading to the issuance of the show-cause notice within one year from that date. The Tribunal considered the case laws cited by the consultant irrelevant and upheld the Department's decision on the interest demand for the period 2007-08.

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Issues:
- Whether waiver of pre-deposit of interest demanded on differential duty paid through supplementary invoices is justified.

Analysis:
1. The applicant sought waiver of pre-deposit of interest demanded on the duty paid through supplementary invoices following an audit for the period 2007-08. The Department pointed out non-payment of duty as per CAS-4, leading to the issuance of supplementary invoices by the applicant in January 2009. Subsequently, a show-cause notice was issued in July 2009 for interest on the duty paid through these invoices.

2. The applicant's consultant argued that the demand for interest was time-barred, citing decisions of the Hon'ble Supreme Court in various cases. The consultant requested a stay on the interest demand for the period 2007-08 due to limitation issues.

3. In contrast, the learned AR contended that the issue was covered by the Hon'ble Supreme Court's decision in the case of Commissioner v. SKF India Ltd., which was followed in another case. The AR argued that the demand for interest was valid based on these precedents.

4. After considering both parties' submissions, the Tribunal noted that although the demand related to the year 2007-08, the differential duty was paid by the applicant in January 2009, causing the cause of action to arise at that time. As the show-cause notice for interest was issued within one year from January 2009, the Tribunal found the case laws cited by the consultant irrelevant. Consequently, the Tribunal ruled that the applicant did not establish grounds for a 100% waiver of pre-deposit. The applicants were directed to pre-deposit the entire interest amount within eight weeks and report compliance by a specified date.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the Tribunal's decision regarding the waiver of pre-deposit of interest demanded on the duty paid through supplementary invoices.

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