2006 (3) TMI 512

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ocate for the appellants submits that the differential duty is payable by them for the period 1-4-2001 to 1-4-2003. It is his submission that the payment of differential duty arose due to the fact that there was an upward revision of the price of their goods which was supplied to their customers. Since the goods were already cleared on payment of duty they raised supplementary invoices showing the raised price and calculated the differential duty and deposited the same with the Government. He submits that they were issued show cause notice on 29-3-2004 directing them to pay an interest of Rs. 64,927/- under Section 11AB of the Central Excise Act, 1944. The appellants contested the show cause notice on two grounds, (i) interest is not payabl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ow eighteen per cent, and not exceeding thirty-six per cent. Per annum, as is for the time being fixed by the Central Government, notification in the Official Gazette, from the first date of the month succeeding the month in which the duty ought to have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2), or sub-section (2B), of Section 11A till the date of payment of such duty : Provided that in such cases where the duty becomes payable consequent to issue of an order, instruction or direction by the Board under Section 37B, and such amount of duty payable is voluntarily paid in full, without reserving any right to appeal against such payment at any....