2012 (7) TMI 712

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....for the period from the date of clearance of the goods to the date of payment of differential duty. It is not in dispute that the assessee originally paid duty on the goods in terms of the price originally agreed with the buyers. Subsequent to the clearance of the goods, apparently, the price escalation clause of the contract was invoked and the seller and the buyer agreed for an increase. The assessee (seller) issued supplementary invoices for the purpose of collecting the differential price and paying differential duty. The differential duty was voluntarily paid and this fact was intimated to the department. The relevant show-cause notices were issued for recovery of interest under Section 11AB of the Act on the differential duty for the ....

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....y of interest should be raised within one year. Before parting with the matter, the learned counsel has also referred to para 19 of the High Court s judgment in the Presscom Products case, drawing support to her preliminary plea based on National Litigation Policy. In her rejoinder, the learned Superintendent (AR) opposes the plea of limitation and relies on ASN Steel Tubes Ltd. vs. Commissioner: 2011 (265) ELT 127 (Tri.-Del.).   4. I have given careful consideration to the submissions. As rightly submitted by the Superintendent (AR), it is settled law that an assessee who is placed in a factual situation like the respondent is required to pay interest under Section 11AB on an amount of differential duty paid under sub-section (2B) ....

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.... words, it is a continuing liability. Where the liability is a continuing liability, the statute may not prescribe a period of limitation. This apart, there are judgments of the apex court to the effect that interest on tax is automatic. If the tax is not paid on or before the due date, interest thereon will accrue to the revenue. The cumulative effect is that the department is entitled to demand interest on an amount of duty at any time till such interest is paid by the assessee. In my humble opinion, the view taken on this point by this Tribunal in the case of Emco Ltd. is per incuriam and cannot be followed as a precedent.   6. The preliminary objection raised by the learned counsel is also liable to be overruled. This plea has b....