2016 (11) TMI 514

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....pecified in the purchase order. During the period of operation, cost of the final product increases by virtue of cost of input, fuel, electricity, labour, etc., in such circumstances, it was agreed upon by the manufacturer and its customers and the customers agrees to increase the rates mentioned in the original purchase order by certain percentage and the new rates was effective from the date already agreed upon between the parties. Thereafter manufacturer issues supplementary invoices for differential value and also pays the duty on the said differential value as required under Rule 9(1)(b) of the CENVAT Credit Rules, 2004. Thereafter the show-cause notice was issued demanding interest covering the date specified in the supplementary invo....

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....r recovery of interest which is automatic. Further, the identical issue has been considered by the Division Bench of this Tribunal in the case of Sharavathy Conductors Pvt. Ltd. vs. CCE, Bangalore in E/2710/2011-DB dated 4.11.2016 wherein it has been observed in para 6 as under: "6. It is not disputed that differential duty is payable on the supplementary invoices issued to the customer subsequent to the date of clearance of the goods. Such differential duty also stands paid. The question before us is whether interest is required to be paid on such differential duty. If so from what date the interest is liable to be paid and finally whether the show-cause notice issued for recover of interest is hit by time-bar inasmuch as the same....

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....2010 for the period June 2007 to December 2007. The learned DR has argued that there is no time limit for issue of notice for recovery of interest. She has relied upon the case of SKH Auto Components Ltd. When we consider the definition of  relevant date  in Section 11A of the Central Excise Act, we find that the amendment has been carried out w.e.f. 14.05.2015 to the effect that relevant date, in the case where only interest is to be recovered, will be the date of payment of duty to which such interest relates. However, the amendment is prospective w.e.f 14.05.2015 and cannot be applied to the prior period. However, the Hon'ble apex court in the case of Commissioner vs. T.V.S. Whirlpool Ltd.: 2000 (119) E.L.T. A177 (S.C.) has hel....