TaxTMI 
TaxTMI 
2025 (1) TMI 475
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....onal assessment in terms of Rule 7(4) of Central Excise Rules, 2002. 2. The brief facts of the case are M/s. ITI, the Appellant is the manufacture of telecommunication equipment including telephone exchange falling under Chapter 85 of Central Excise Act, 1985. The Appellant cleared parts and accessories of telephone exchanges and other items manufactured by them to their customers mainly Department of Telecommunication (DOT) as per the directions given in the purchase order. Since the Appellant was not in a position to determine the actual value of goods cleared to DOT at the time of clearance as there was a clause of price escalation in the contract entered into with DOT, Appellant had requested for provisional assessment, and it was al....
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.... (Rupees Four Lakhs Seventeen thousand one Hundred and Forty Seven only) should not be denied while finalising provisional assessment for the period 2001-02 under Rule 7(3) of Central Excise (No.2) Rules 2001 and Rule 7 (3) of the Central Excise Rules, 2002, 2) An amount of Rs. 68,07,274/- should not be levied on them under Section 11AB of the Central Excise Act, 1944 being the interest payable on differential duty paid by them on the final value of the goods cleared by them during the period 01.04.2001 to 31.03.2002. 3) The excess amount of duty paid should not be credited to Consumer Welfare Fund in terms of the provisions of Section 11B (2) of the Central Excise Act, 1944". 4. Accordingly, the Adjudication authority ....
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....ubject matter of assessment, and the balance amount of excess paid duty is appropriated towards interest amount payable. Aggrieved by the said order, an appeal was filed before the Commissioner (Appeals) and Commissioner (Appeals) as per the impugned order dismissed the appeal. Aggrieved by the impugned order, appeal is filed before this Tribunal. 6. When the appeal came up for hearing, Ld. Counsel for the Appellant submits that demand of interest for payment of excise duty for price escalation through supplementary bill is not correct in law for the reason that the Appellant were paying differential excise duty then and there before the finalization of provisional assessment without adjusting the excess excise duty paid in the cases whe....
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.... Vs. Commissioner of C. Ex. & S.T.,-2009 (243) E.L.T 41 (Tri.-Bang.) vide Final order No. 140-141/2009 dated 19.02.2009 held that interest on penalty is not imposable against a company declared as sick by BIFR. Thus, the demand of interest amounting to Rs. 68,07,274/- is not sustainable. 8. The Ld. Authorised Representative (AR) for the revenue reiterated the finding in the impugned order and submits that the issue is no more res integra and it is well settled that the liability for payment of duty is statutorily fixed being the date of removal of the goods consequently to the manufacture thereof and the same cannot be changed. This view was upheld by the Hon'ble High Court of Allahabad in the matter of M/s. Bharat Heavy Electricals Ltd ....
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....t is on actual amount of tax withheld and the extent of the delay in paying the tax on the due date as held by the Supreme Court in Pratibha Processors vs. Union of India, 19 (B8) ELT 12." "15. We find that Section 3(1) of the Act is the charging section, which uses the words "levied and collected These are the same words as used under Article 265 of the Constitution, which has been interpreted as comprehending the entire process of taxation commencing from the imposition of the tax by enacting a statute to the actual taking away of the money. The words "levied" is a wide and generic expression and is of wide import and takes in all the stages of charge. quantification and recovery of duty though in certain context it may have a re....