TaxTMI 
TaxTMI 
2011 (3) TMI 373
X X X X Extracts X X X X
X X X X Extracts X X X X
....e respondent has two plants - Vikrant Tyres-Plant I at Mysore and Truck Radial Plant-II at Hebbal Industrial Area, Metagalli, Mysore. They requested for provisional assessment in respect of clearances effected to their depots for effecting further sales from 1-7-2000 onwards. Based on the request of the respondents, provisional assessment orders were passed by the department in respect of the financial year 2002-03 in respect of both the plants. At the time of ordering the provisional assessment, various abatements that are covered under the provisional assessment, the mode of computation of value was not enumerated. Therefore particulars were called for from the respondents. Accordingly, the respondents informed that they are claiming abat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d upheld the assessee's contention. In passing the said order, the Tribunal did not consider the claim of the assessee regarding abatement, which had been negatived. Therefore, an application was filed for rectification of the said order. The said application was rejected in view of the judgment of this Court that the application was not disposed off within six months from the date of the order of the Tribunal in terms of Section 35C(2) of the Central Excise Act. Now the matter stands remitted to the Tribunal for consideration of the rectification application afresh and it is pending consideration. 5. This Court admitted these two appeals to consider the following substantial question of law : (1) Whether the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....light of the aforesaid contentions, in order to answer the substantial question of law, it is necessary to look into the provisions in the Act and the Rules. 9. Section 11A of the Act provides for recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded. It provides that duty is payable as per the provisions of the Act or Rules made thereunder. The Act by itself will not stipulate the date on which the duty is payable. 10. Rule 8 of the Central Excise Rules, 2002 provides for manner of payment. Sub-rule (1) of Rule 8 provides that duty on the goods removed from the factory or the warehouse during a month shall be paid by the 6th day of the following month if the duty is paid electronically ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....erest on any amount payable to Central Government, consequent to the order of final assessment under sub-rule (3), at the rate specified by the Central Government by notification issued under Section 11AA or Section 11AB of the Act from the first day of the month succeeding the month for which such refund is determined, till the date of payment thereof. 12. Section 11AB provides for Interest on delayed payment of duty. It provides, where any duty of excise has not been levied or paid or has been short-levied or short paid or erroneously refunded, the person who is liable to pay the duty as determined under sub-section (2) or has paid the duty under sub-section (2B) of Section 11A shall in addition to the duty, be liable to pay interes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....de on that date. Not after the determination by the final assessment order. All that happens in the final assessment order is, the rate of duty payable is determined. The adjustment is to be made on the date it was actually liable to be paid. Therefore, if the duty paid under a provisional assessment is less than what is determined in the final assessment, it is a case of short payment of duty. Therefore interest is payable on that short payment of duty from the due date, the relevant date being the day on which the duty is to be adjusted. Therefore, the date of provisional assessment and the date of final assessment have no relevance in deciding the payment of interest. The date on which duty is payable is provided under the Rules. If the ....