Interest on differential duty follows retrospective price variation when provisional pricing is later revised

Interest is payable on differential duty arising from retrospective price variation where goods were cleared on provisional pricing. The Supreme Court position applied by CESTAT treats the later-revised price as relating back to the time of removal, so the duty liability and corresponding interest are not postponed until final assessment. Applying that settled principle, the Tribunal held the appeal was covered against the assessee and confirmed that interest attaches to the differential duty.

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Issues: Whether interest is payable on differential duty arising from price variation.

Analysis: The Tribunal noted that the controversy had already been settled by the Supreme Court, which held that where goods are cleared on provisional pricing and the price is later revised retrospectively, the differential duty relates back to the time of removal. The liability to pay duty and the corresponding interest is therefore not postponed to the date of final assessment. Applying that settled position, the Tribunal found that the issue in the appeal stood covered against the assessee.

Conclusion: Interest is payable on the differential duty arising from price variation, and the issue is decided against the assessee.

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