2016 (9) TMI 481

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....) appeared for the Respondent ORDER Brief facts of the case are that the appellant is engaged in manufacture of yarn and unprocessed man made fabrics falling under Chapter 55 of the Scheduled to Central Excise Tariff Act, 1985.  During the disputed period, the appellant had cleared the unprocessed man made fabric for further processing on job work basis.  After return of the goods by t....

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....se of short payment of duty, the excess paid duty may be adjusted and the balance may be confirmed as payable by the appellant.  However, the submissions of the appellant was not considered and the adjudication order was passed confirming, the short paid amount of duty of Rs. 38,36,604/- as payable by the appellant.  In appeal, the Ld. Commissioner (Appeals) vide impugned order has uphel....

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....sited Rs. 7,93,582/-.  4.  With regard to adjustment of the excess paid duty towards the short fall in the duty liability, the issue is no more res integra in view of the Larger Bench decision of this Tribunal in the case of Hindustan Zinc Ltd. vs CCE Jaipur-II 2015-TIOL-2427-CESTAT-Del. wherein by relying on the judgment of Hon'ble Karnataka High Court in the case of Toyota Kirloskar A....

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.... as computation of the interest and liability is concerned, we find that the Hon'ble Allahabad High Court in the case of Bharat Heavy Electricals vs CCE Kanpur 2015 (325) ELT 417 (Albd) has held that wherever there is short payment of duty the interest liability shall be payable for the period when the duty was short paid.  Thus, in this case wherever the duty liability for the respected mont....