TaxTMI 
TaxTMI 
2014 (9) TMI 407
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....terest on delayed payment contained in Section 11AB are applicable only for duty determined under sub-section (2) of the Section 11A or also for duty which has been paid under Section 11A of the Central Excise Act, 1944? (b) Whether in the facts and circumstances of the case, the impugned order passed by the Tribunal is contrary to decision of the Hon'ble Supreme Court in the matter of CCE, Pune v. SKF India Ltd. reported in 2009 (239) E.L.T. 385 (S.C.) and in the matter of CCE v. International Auto Ltd., 2010 (250) E.L.T. 3 (S.C.)? (c) Whether in the facts and circumstances of the case, the respondent is liable to pay interest, when it pays the duty because of subsequent refixation of price....
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....-manufacturer had sold certain ball-bearings and textile machine parts. At the time of sale, the assessee received certain price upon which excise duty at the rate prevalent was also paid up. Later on, however, there was a revision of price with retrospective effect. Following such revision, the assessee demanded from its customers, the balance price and issued to them supplementary invoices. At that time, the assessee paid the differential duty on the goods sold earlier. The Revenue was however of the opinion that the assessee was liable to pay interest on the differential duty paid later. It was in this background that the Apex Court, interpreting various provisions of the Central Excise Act, in particular Section 11AB thereof, held that ....
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....ble. Finding that provisions of Section 11A(2) and 11A(2B) were not applicable as the situation occurred in the instant case, was quite different, Section 11AB(1) was not at all applicable, and therefore, the Assessee was not required to pay interest." 13. It further held that a case of this nature would not fall in the category where duty of excise was not paid or short paid. 14. We are unable to subscribe to the view taken by the High Court. It is to be noted that : the assessee was able to demand from its customers the balance of the higher prices by virtue of retrospective revision of the prices. It, therefore, follows that at the time of sale the goods carried a higher value and those were cleared on short payment of duty. ....
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....11A, shall, in addition to the duty, be liable to pay interest at such rate not below [ten per cent] and not exceeding thirty-six per cent. Per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first date of the month succeeding the month, in which the duty ought to have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2), or sub-section (2B), of Section 11A till the date of payment of such duty : Provided that in such cases where the duty become payable consequent to issue of an order, instruction, or direction by the Board under Section 37B, and such amount of duty payable is voluntaril....