TaxTMI 
TaxTMI 
TaxTMI 
2019 (4) TMI 171
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.... all these appeals are common, therefore, these are taken up together for disposal. 3. The facts common in all these appeals are that the Appellants are engaged in the manufacture of motor vehicle parts, falling under Chapter 87 of CETA 1985. They sale/supply these motor vehicle parts to various OE manufacturers at the price declared at the time of clearance of goods on payment of duty. Later, on revision of the prices, they have issued supplementary invoices and also discharged appropriate differential duty on the same. Since they have not discharged appropriate interest on the differential duty paid, computing it from the date of initial clearance, Show Cause Notices were issued to the Appellants on the basis of the information submitted....
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....customers. On subsequent change in the cost of the production, they revised the price and issued supplementary invoices either by increasing the prices or by way of decreasing the prices. On the differential duty paid when the price has been increased, they issued supplementary invoices and their customers availed credit on the said supplementary invoices. However, the Appellants failed to discharge appropriate interest on the differential duty paid subsequent to the clearance of the goods by raising supplementary invoices. He submits that on revision of prices, the interest is payable for the normal as held by Hon'ble Delhi High Court in the case of Hindustan Insecticides Ltd Vs C.C.E. LTU - 2013 (297) ELT 332 (Del). It is his contenti....
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....rest from the date of clearance of the goods on the revised vale. Their Lordships, after considering the relevant provisions viz. Section 11(2), 11AA and 11AB observed has follows:- "9. Section 11A puts the cases of non-levy or short levy, non-payment or short payment or erroneous refund of duty in two categories. One in which the non-payment or short payment etc. of duty is for a reason other than deceit; the default is due to oversight or some mistake and it is not intentional. The second in which the non-payment or short payment etc. of duty is "by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of the Act or of Rules made thereunder with intent to evade payment o....
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.... or erroneously refunded, the person who has paid the duty under sub-section (2B) of Section 11A, shall, in addition to the duty, be liable to pay interest .......It is thus to be seen that unlike penalty that, is attracted to the category of cases in which the non-payment or short payment etc. of duty is "by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of the Act or of Rules made thereunder with intent to evade payment of duty", under the scheme of the four Sections (11A, 11AA, 11AB & 11AC) interest is leviable on delayed or deferred payment of duty for whatever reasons. 11. The payment of differential duty by the assessee at the time of issuance of supplementary....
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....s not required to pay interest." 13. It further held that a case of this nature would not fall in the category where duty of excise was not paid or short-paid. 14. We are unable to subscribe to the view taken by the High Court. It is to be noted that: the assessee was able to demand from its customers the balance of the higher prices by virtue of retrospective revision of the prices. It, therefore, follows that at the time of sale the goods carried a higher value and those were cleared on short payment of duty. The differential duty was paid only later when the assessee issued supplementary invoices to its customers demanding the balance amounts. Seen thus it was clearly a case of short payment of duty though indeed completely unintended ....