2017 (1) TMI 537

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ee raised supplementary invoices on account of revision in prices of Conductors subsequent to clearance of the goods from the factory. They discharged the differential duty on such supplementary invoices. However they failed to pay interest on such differential duty in terms of Section 11AB of the Central Excise Act 1944. The Department took the view that interest is to be charged on such differential duty under Section 11AB from the date of original clearance of the goods till the date of payment of differential duty. A show-cause notice was issued on 20.01.2010 demanding payment of interest to the extent of Rs. 1,02,569/- (Rupees One Lakh Two Thousand Five Hundred and Sixty Nine only) for the supplementary invoices raised during the perio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ther hand submitted that the time limit specified under Section 11A is not applicable for recovery of interest. She submitted that interest gets automatically charged when differential duty is payable and is paid after delay. She relied upon the decision of the Tribunal in the case of M/s. SKH Auto Components Ltd. Vs. CCE, Delhi-IV Final Order No. 553/2011-EX dated 23.06.2011. 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....show-cause notice is hit by time-bar inasmuch as it has been issued on 20.01.2010 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 ....