Tribunal Rules Interest Demand on Supplementary Invoices Barred by Limitation; Appeal Allowed, Order Set Aside.

The Tribunal determined that the demand for interest on supplementary invoices was barred by limitation, as the duty was paid during 2008-09 and the audit was conducted within a reasonable timeframe. Consequently, the extended period of limitation was not applicable. The impugned order was set aside, and the appeal was allowed.

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Issues involved: Appeal against demand of interest under Section 11AB of the Central Excise Act, 1944 for payment of duty on supplementary invoices.

Summary:
The appellant, engaged in manufacturing steel products, availed cenvat credit and paid duty on inputs, capital goods, and service tax on input services. During an audit for 2008-09, irregular cenvat credit and short duty payment were observed. A show-cause notice was issued, and after adjudication, cenvat credit was denied, and duty demand was confirmed. The specific issue was the payment of interest on supplementary invoices. The appellant raised these invoices due to inter-branch stock transfer, goods diverted to a stock yard, and price revision. The appellant contended they were not liable to pay interest based on precedents. The Revenue argued that interest should have been paid at the time of duty payment on supplementary invoices. The Tribunal referenced relevant cases and held that the extended period of limitation was not applicable as duty was paid on the supplementary invoices during 2008-09, and audit was conducted within a reasonable time. Consequently, the demand for interest on supplementary invoices was deemed barred by limitation, and the impugned order was set aside, allowing the appeal.

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