2010 (9) TMI 244
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.... is a price escalation clause in the agreement and consequently revised purchase orders are issued and supplementary invoices for different amounts are raised by the appellant. At the time of initial clearance, duty liability is discharged on the basis of prevalent prices and wherever subsequently supplementary invoices are issued for the higher price, the appellants paid the differential duty. The dispute in the present appeal relates to the interest leviable on such differential duty paid subsequently by way of supplementary invoices. The show cause notice issued for the said purpose was decided against the appellant confirming the interest amount of Rs.3,76,633/- and upheld by the Commissioner (Appeals) vide his impugned order. 2. The ....
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....or provisional assessment and in that situation also they were required to pay the interest. The Hon'ble High Court also did not consider the binding provisions of Sub-section 2B of Section 11A according to which also the appellants are required to pay the interest. The Hon'bleHigh Court also did not consider the question that the levy of interest on tax is in the nature of compensation as held by the Hon'ble Supreme Court in the case of Central Provinces Manganese Ore Co. (supra). 4. As seen from above Commissioner (Appeals) is otherwise not disputing the applicability of the law declared by the Hon'bleHigh Court to the facts of the instant case. However he is finding fault with the same on the grounds that High Court did not consider the....