TaxTMI 
TaxTMI 
2011 (10) TMI 70
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....lant it was observed that the appellant had raised supplementary invoices for the price escalation received by them from their customers in respect of goods previously cleared by them. The assessee had paid the differential duty which was charged by them to their customers in the said supplementary invoices raised during April, 2007 to March, 2008. However, the appellant did not pay interest payable on such differential duty. Accordingly, a show-cause notice dated 17.03.2009 was issued by the Commissioner of Central Excise, Pune I Commissionerate proposing to appropriate the amount of Rs.50,61,323/- paid by them towards differential duty under Section 11A, demanding interest amount of Rs.1,29,710/- under Section 11AB of the Central Excise A....
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.... memo to the determination of any duty which has been paid by the appellant voluntarily. The amount of interest confirmed is only Rs.1,29,710/- which is well below the limit of Rs.10 lakhs prescribed for Single Member Bench cases. Therefore, I do not find any merit in the appellant's contention that the case be heard by the Division Bench. Since the matter has come up for the 3rd time, I propose to dispose of the matter. 4. The learned A.R. appearing for the Revenue submits that the hon'ble apex court in the case of Commissioner of Customs vs. SKF India Ltd. 2009 (239) ELT 385 had held that interest is leviable in case there is a delay in payment of duty and differential amounts are collected by raising supplementary invoices on account of....
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....ct, it becomes clear that interest is levied for loss of revenue on any count. In the present case, one fact remains undisputed, namely, accrual of price differential. What does differential price signify, It signifies that value, which is the function of the price, on the date of removal/clearance of the goods was not correct. That, it was understated. Therefore, the price indicated by the supplementary invoice is directly relatable to the value of the goods on the date of clearance, hence, enhanced duty. This enhanced duty is on the corrected value of the goods on the date of removal. When the differential duty is paid after the date of clearance, it indicates short-payment/short-levy on the date of removal, hence, interest which is....