2017 (10) TMI 746

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....nt is engaged in the manufacture and marketing of various types of two wheelers, parts of internal combustion engines and parts and accessories of two wheelers falling under Chapter Heading 8711 and 8407 of the Central Excise Tariff Act, 1985. During the disputed period, the Appellant had two manufacturing units viz. at Hosur unit and Mysore unit ( Appellant herein ), which were separately registered under the Central Excise Act, 1944. The present appeal pertains to the clearances made by the Mysore unit. 2.2. During the disputed period, the Appellant was engaged in the activity of machining castings like cam shaft, cylinder complete and crank cast left and right, which were stock transferred to the Hosur unit and further used in manufac....

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....aid duty against the short payment of duty, the Appellant paid the differential duty amounting to Rs. 2,58,312 vide letter dated 30.01.2001 and Rs. 1,19,521 vide letter dated 13.02.2001. The said adjustment was also accepted by the department. 2.4. After lapse of 9 months, in terms of internal audit report dated 07.11.2001, it was observed that the duties excess paid cannot be set off against duty short paid in respect of others and that wherever duty is found to have been short paid, the same may be paid in full and for the excess refund claim may be preferred under Section 11B. Accordingly, the Appellant was directed to pay differential duty of Rs. 38,60,948/- plus interest of Rs. 6,84,449/- (calculated from due date of payment for eac....

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....G(1)(d). He also submitted that the provision of Rule 173G(1)(d) does not cover interest on differential duty which may arise at a later date, which is governed by the provisions of Section 11AA and Section 11AB of the Central Excise Act, 1944. For this submissions, he relied upon the decision of the Madras High Court in the case of Chamundi Steel Castings (India) Ltd. Vs. CESTAT [2009(247) ELT 116 (Mad.)] wherein it has been held that the said rule can only be invoked when there was failure in fortnightly payment of duty and not when differential duty has been paid voluntarily by the assessee subsequently. He also submitted that the interest under Section 11AA(1) is applicable only in cases where duty has been determined by process of adju....

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....n the following decisions:- i. Toyota Kirloskar Autor Parts Pvt. Ltd. Vs. CCE, Bangalore [2012(276) ELT 332 (Kar.)] ii. Tilrode Chem Pvt. Ltd. Vs. CCE, Bangalore [2014(314) ELT 9 (Kar.)] iii. Essar Steel India Ltd. Vs. CCE [2017(345) ELT 139 (Tri. Del.)] iv. Jonas Woodhead & Son (I) Ltd. Vs. CCE, Chennai [2015(329) ELT 577 (Tri. Che.)] v. CCE, Bangalore Vs. BHEL [2010(257) ELT 369 (Kar.)] vi. Chamundi Steel Castings (India) Ltd. Vs. CESTAT [2009(247) ELT 117 (Mad.)] 5. On the other hand, the learned AR reiterated the findings of the impugned order and submitted that it is a fact that the appellant has failed to determined and discharge the duty liability on the goods at the time of cl....