2010 (1) TMI 1047

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....ntract with price escalation clause. On price escalation, the appellants received differential amount and paid central excise duty on the same under supplementary invoices. The supplementary invoices were issued during the period from 16-9-2003 to 13-8-2004. But interest as per provisions of Section AB, chargeable on the duty paid under the supplementary invoices on the amount received on account of price escalation, was not paid. The show cause notice for charging interest was issued on 30-1-2006. The total interest proposed to be recovered is Rs. 40,145/-. The show cause notice also proposed imposition of penalty. However, the Asstt. Commissioner vide Order-in-Original dated 28-12-2006 vacated the demand raised by show cause notice dated ....

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.... is clear that the interest demand though raised after normal period of limitation, was upheld by the Hon'ble Supreme Court. 4. Shri Hemant Bajaj, Advocate, learned Counsel for the respondents while conceding that in view of the Supreme Court judgment in the case of SKF India Ltd. (supra) interest on duty paid under supplementary invoices is chargeable as per provisions of Section 11AB, demand of interest is subject to the limitation period prescribed under Section 11A; that the Tribunal in the case of C.C., Madras v. T.V.S. Whirlpool Ltd., reported in 1996 (86) E.L.T. 144 (Tribunal) has held that where no time limit is prescribed for demand/recovery of interest under Section 47 and 61(3) of the Customs Act, 1962, the time limit of six m....