2007 (11) TMI 519

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....used the records. The issue involved in this case is regarding the charging of interest on the supplementary invoices raised by the respondent-assessee on the enhancement of the purchase order value. The respondents had discharged the duty liability on the clearance of the goods as per the purchase order placed on them. Subsequently, the respondents had sought enhancement, of the price of the goods cleared by them to their suppliers, on the ground that there was a enhancement of the input prices, on protracted negotiations with the purchasers, resulted in increase in the value of the goods cleared by the respondents. It is seen that there is no time gap between the receipt of the communication for the enhancement of the prices and raising o....

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....ed and paid Central Excise duty accordingly. After the clearance of the goods, the Assessee had received the Amendment to the said Purchase Order for enhancement of rate with retrospective effect. The assessee, therefore, calculated and paid the differential duty by issuing the supplementary invoice to the customer. It is the claim of the Department that on this differential duty paid in accordance with the supplementary invoice, the Assessee ought to pay interest as chargeable under Section 11AB of the Central Excise Act, 1944. The claim is cased on the contentions that since the goods were cleared earlier, the entire duty was payable on the date of clearance of the goods and therefore, differential duty although paid by the Assessee volun....

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....pplicable as the situation occurred in the instant case was quite different, section 11AB(1) was not at all applicable, and therefore, the Assessee was not required to pay interest. Learned Assistant Solicitor General Shri Sharma vehemelty urged that if there is time-gap between the date on which the differential rates applicable with retrospective effect were learnt and the date on which the duty was paid assessee would be liable to pay interest. Eventually, either on going through the order-in-original dated 30-6-2004 passed by the Assistant Commissioner, Central Excise and Customs, Aurangabad or upon going through the text of the show-cause notice-cum-demand dated 26-4-2004, a copy of which is produced for ready reference (marked "X" ....