Retrospective price escalation in excise attracts interest on differential duty from original removal, not from supplementary billing.

Where excisable goods are cleared on a provisional or revisable price and the price is later enhanced retrospectively, the differential duty is treated as relating back to the original removal. On that basis, interest on the delayed differential duty is payable under the Central Excise statutory scheme and is not postponed until the supplementary invoice is issued. The demand of interest was therefore sustained, with only verification directed for adjustment or refund of any excess pre-deposit in accordance with law.

---

---

Issues: Whether, on upward revision of price after removal of excisable goods, the assessee is liable to pay interest on the differential duty under Section 11AB of the Central Excise Act.

Analysis: The Tribunal followed the binding exposition that, where the original price is provisional and is later enhanced with retrospective effect under an escalation clause, the duty on the enhanced value relates back to the time of removal. In such a situation, the relevant charging and payment scheme under the Act and Rules does not postpone liability for interest until the supplementary invoice is raised. The differential duty is treated as becoming payable for the period covered by the original clearance, and the statutory scheme supports levy of interest on the delayed differential amount.

Conclusion: The assessee was liable to pay interest on the differential duty.

Final Conclusion: The appeals failed, and the demand of interest was sustained, with only verification directed for adjustment or refund of any excess pre-deposit in accordance with law.

Ratio Decidendi: Where excisable goods are cleared on a provisional or revisable price and the price is later enhanced retrospectively, the differential duty and consequential interest relate back to the original removal and become payable under the statutory scheme governing excise duty and interest.

---