2015 (5) TMI 134

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....voices. The adjudicating authority confirmed the demand of interest and also imposed penalty of Rs. 2,00,000/- under Rule 25(1) (a) of CER, 2001. 2. E/356/2006 In this appeal, interest demanded on the differential duty paid consequent to finalization of the provisional assessments. The adjudicating authority confirmed the demand of interest of Rs. 12,33,239/- under Rule 7(4) of CER,2002. 4. The respondents filed appeals against both the orders and in the impugned orders dated 22/09/05 and 28.02.06, the Commissioner (Appeals) set aside the orders and allowed the appeals with consequential relief. Revenue filed appeals against the impugned orders. 5. Ld. AR on behalf of the Revenue reiterated the grounds of appeals and submits that intere....

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....lization order as they have already paid the differential duty on their own calculation as and when payment was due much before finalization. He further submits that Rule 7(4) stipulates that interest is payable only on the differential duty if any payable and not paid on the date of determination of final assessment till the date of payment of such amount. He relied upon the following case laws in support of his contention: 1. Ispat Industries Ltd. Vs. CCE, Nagpur 2007 (209) ELT 280 2. CCE, Nagpur Vs. Ispat Industries Ltd 2010 (259) ELT 662 3. Commissioner v. Ispat Industries Ltd 2014 (301) ELT A70 (S.C) 4. Tata Motors Ltd. Vs. CCE, Pune. 2008 (226)ELT 563 (Tri.-Mum.) 5. 2015-TIOL-397-HC-Mum. He also relied on this Tribunal s Final O....

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....s. Rucha Engineering the High Court observed as follows: "It is evident that the Section (11AB) comes into play if the duty paid/levied is short. Both, the Commissioner (Appeals) and the CESTAT have observed that the Assessee paid the duty on its own accord immediately when the revised rates became known to them from their customers. The differential duty was due at that time i.e. when the revised rates applicable with retrospective effect were learnt by the Assessee, which was much after the clearance of the goods and therefore, question of payment of interest does not arise as the duty was paid as soon as it was learnt that it was payable. Finding that provisions of Section 11A (2) and 11A (2B) were not applicable as the situation occurr....

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....rder as to costs." The ratio of the above judgment is squarely applicable to the facts of the present case. The respondents are liable for payment of interest and accordingly the impugned order is liable to be set aside to the extent. However, taking into the overall facts of the case and also in view of the conflicting decisions of various judicial forms for and against the interest payment till it was settled by the Apex Court in the above order the respondents are not liable for any penalty. Accordingly the penalty is waived. 8. As regards appeal E/356/2006 interest has been demanded on the differential duty consequent on the finalisation of the provisional assessment. The identical issue has been decided by the Hon ble Mumbai High Cou....