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The CESTAT held that interest on differential duty is a statutory liability arising from the date of removal of goods, irrespective of when the differential duty is paid. The interest serves as compensation for the delay in payment of the duty due. The appeal was dismissed, upholding the levy of interest on differential duty paid before finalization of provisional assessment u/r 7(4) of Central Excise Rules, 2002.
The CESTAT held that interest on differential duty is a statutory liability arising from the date of removal of goods, irrespective of when the differential duty is paid. The interest serves as compensation for the delay in payment of the duty due. The appeal was dismissed, upholding the levy of interest on differential duty paid before finalization of provisional assessment u/r 7(4) of Central Excise Rules, 2002.
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