Interest on supplementary invoice duty differentials is payable where price escalation triggers additional excise duty liability.

Interest is payable on differential central excise duty paid through supplementary invoices issued after a price increase, where the additional duty arises from price escalation. The Tribunal applied the binding Supreme Court position on supplementary-invoice duty differentials and found no basis to interfere with the order under challenge. Interest was therefore held payable under Section 11AB of the Central Excise Act, 1944 on the differential duty, and the appeal failed.

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Issues: Whether interest is payable on the differential duty paid through supplementary invoices consequent to price increase.

Analysis: The Tribunal noted that the Supreme Court had already held that interest is payable on differential duty paid on the basis of supplementary invoices arising from price escalation. In view of that binding position, no ground was found to interfere with the order under challenge.

Conclusion: Interest was held payable under Section 11AB of the Central Excise Act, 1944 on the differential duty paid on supplementary invoices consequent to price increase, and the appeal failed.

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