TaxTMI 
TaxTMI 
2011 (9) TMI 1123
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.... of duty on enhanced value at the time of issuance of supplementary invoices cannot be regarded as delayed payment of duty and whether interest on such delayed payment is leviable under the provisions of Section 11AB of the Central Excise Act, 1944 ? " 2. This appeal was decided by an earlier bench of this Court on 28th October, 2009 which order was carried before Apex Court by its order dated 6th April, 2011, remanded the proceeding for fresh consideration in light of the decision of the Apex Court in case of Commissioner of Central Excise V/s. International Auto Ltd. reported in (2010) 2 Supreme Court Cases 672. 3. Learned advocate Mr.Gaurang Bhatt had submitted that this issue is also covered by the decision of the the Apex Court in ca....
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.... in the following manner : "Heard learned counsel for the appellant. No substantial question of law arises for our consideration. The Tribunal held that the question is covered by various judgments referred to in the order passed by the Tribunal. The appeal, therefore, lacks merits and is dismissed." When travelled to the Apex Court, the Apex Court held thus: "Now, it is brought to our notice by the learned Additional Solicitor General that this Court in Commissioner of Central Excise Vs. International Auto Ltd. [(2010) 2 SCC 672)] held that it is not possible to subscribe to the view taken by the High Court in Rucha Engineering Pvt. Ltd. case In such view of the matter, in our considered opinion, the matter requires a serious consi....
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....clear that such payment would not be exempt from interest chargeable under Section 11AB of the Act. What is stated in Explanation (2) to sub-section 2(B) is reiterated in Section 11AB of the Act, which deals with interest on delayed payment of duty. From the Scheme of Section 11A(2B) and Section 11AB of the Act, it becomes clear that interest is levied for loss of revenue on any count. In the present case, one fact remains undisputed, namely, accrual of price differential. What does differential price signify? It signifies that value, which is the function of the price, on the date of removal/clearance of the goods was not correct. That, it was understated. Therefore, the price indicated by the supplementary invoice is directly relatable to....