TaxTMI 
TaxTMI 
2017 (5) TMI 1341
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.... assessments were finalised by the adjudicating authority and the deduction on account of invoice discount in lieu of sale tax, additional discount received through credit notes, cess on yarn and forwarding charges were disallowed. Therefore, the respondent was directed to pay duty of Rs. 5,56,97,628/- for the period in question. The said order was challenged by the respondent before the ld. Commissioner (Appeals), who directed the respondent to pay Rs. One Crore towards duty for entertaining the appeal. The said amount was deposited by the respondent . The ld. Commissioner (Appeals) allowed the deductions on account of Cess on sewing thread, Invoice discount in lieu of Sales Tax, Forwarding Charges but disallowed the deduction on additiona....
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....ntervening period. The also relied on the decision of the Hon'ble Apex Court in the case of CCE, Hyderabad vs. I.T.C. Limited 2005 (179) ELT 15 (S.C.). 3. On the other hand, ld. Counsel for the respondent opposed the contention of the ld. AR and submits that it is not the case of order of pre-deposit under Section 35F of Central Excise Act, 1944. In fact, it is a case of payment of duty by the appellant for finalisation of their provisional assessment. It is his submission that the provisional assessment was finalised and the amount of pre-deposit is, in fact the amount of duty paid by the appellant. In support of his contention, the relied on the decision of Hon'ble High Court of Punjab & Haryana in the case of Vashisht Ispat Produc....
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....t on the differential amount of duty which becomes payable or refundable upon finalisation of all or any class of provisional assessments. Admittedly, after assessment was finalised by this Tribunal, the respondent is entitled to claim interest on the excess duty paid by them before finalisation of assessment. The same view was taken by the Hon'ble High Court of Punjab & Haryana in the case of Vashisht Ispat Products (supra). Paragraph 4 of the decision is relevant and is reproduced:- "4. Learned counsel for the assessee submitted that as the final order determining the capacity of production of the assessee came to be passed on 29-3-2004, the assessee could be asked to pay the interest, if any, only from that date and not from....
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....erved as under:- "18. The aforesaid provision clearly provides that the Central Government may make rules including rules conferring powers to provide for charging of interest on the differential amount of duty, which becomes payable or refundable upon finalisation of all or any class of provisional assessment. The provision of law comprised thereunder nowhere specifies such Rules shall restrict the levy of interest for the period consequent to the finalisation of the assessment, rather it specifies that the Rules may provide for interest on the differential amount of duty becoming payable consequent upon the finalisation of assessment. The expression becoming payable would obviously relate to the date on which the duty was require....
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....month for which such amount is determined till the date of payment thereof. The provisions therefore, specifically states that the interest liability will commence from the month succeeding the month for which such amount is determined. The expression for refers to the month for which the amount is determined pursuant to finalisation of assessment. Apparently, it discloses that the interest liability would commence from the month succeeding the day on which the duty was due and payable in relation to the goods cleared. 20 to 22 ..... 23. The expression for as provided under Rule 7(4) of the Rules of 2002 refers to the month for which the amount is determined pursuant to the finalisation of assessment and hence, interest li....