Appeal dismissed for filing delay, interest upheld under Rule 7(4). No merit grounds found. (4)

The appeal was rejected due to a 38-day delay in filing, exceeding the condonable period. The demand for interest under Rule 7(4) of Central Excise Rules, 2002 was upheld based on the decision of the Larger Bench of the Supreme Court. The Tribunal found no grounds to allow the appeal on merits, as the issue was settled by the Supreme Court. Consequently, the appeal was dismissed, and cross objections were disposed of.

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Issues Involved:
1. Delay in filing the appeal.
2. Demand of interest under Rule 7(4) of Central Excise Rules, 2002 read with Section 11AA of Central Excise Act, 1944.

Summary:

Issue 1: Delay in Filing the Appeal

The Commissioner (Appeals) rejected the appeal due to a delay of 38 days in filing, which is beyond the condonable period. According to the statutory provisions, the appeal should have been filed within sixty days from the date of communication of the order, with an additional 30 days condonable delay. The appeal was filed on 21.12.2012, which is 38 days late, and hence, it cannot be entertained as it is hit by provisions of time bar. The Commissioner (Appeals) cited the decision of the Hon'ble Apex Court in Singh Enterprises [2008 (221) ELT 163 (SC)] to support this view.

Issue 2: Demand of Interest

The original authority finalized the provisional assessment for transformers cleared during April 2010 to March 2011 and demanded recovery of duty and interest. The appellant issued supplementary invoices due to price variations in raw materials and discharged additional duty. The appellant argued that they were forced to opt for provisional assessment and pay interest due to the wide gap between tender submission and actual supply. They contended that the eventual price of transformers was not known at the time of tender submission and was determined later by IEEMA.

The Tribunal noted that the issue of demand of interest is covered by the decision of the Larger Bench of the Hon'ble Supreme Court in Steel Authority of India Ltd. [2019 (366) ELT 769 (SC)], which held that interest is payable from the first day of the month succeeding the month in which duty ought to have been paid. The Tribunal found no justification to allow the appeal on merits as the issue is no longer res integra and is settled by the Supreme Court. Consequently, the appeal was dismissed, and cross objections were disposed of.

(Order pronounced in the open court)

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