2009 (4) TMI 202

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er the first respondent - Tribunal is right in holding that Rule 173G(1)(d) of C.E. Rules and/Rule 8 of CE Rules, 2001 are applicable to the present case?" 2. The appellant is the manufacturer of HSD bars falling under Ch. No. 721490 of Central Excise Tariff. Their products are cleared with their consignment agent, stock transfer sales (depot) and on conversion which are referred as "outlets". At the time of clearance of the goods from the factory gate, they adopt the market value as assessable value for payment of duty and subsequently on receipt of information regarding the value at which the three outlets have sold the said product, the assessee works out and pay the differential duty. 3. A show cause notice was issued on 27-2-2003....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....le. On receipt of information from the consignment agents/depots who sold the product, to the customers the Appellant works out the differential duty payable on the excess value adopted by their outlets." and therefore came to the conclusion that the appellant had, on their own volition, worked out the differential duty and paid the same to the department without waiting for instructions from the department and it is only after payment of the differential duty, that the department had issued the show cause notice. The Commissioner (Appeals) also held that the appellant had acted in a bona fide manner and the excess payment was still retained by the department and therefore the demand of interest appears to be incorrect. 5. Against thi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oth, the Commissioner (Appeals) and the CESTAT have observed that the assessee paid the duty on its own accord immediately when the revised rates became known to them from their customers. The differential duty was due at that time i.e. when the revised rates applicable with retrospective effect were learnt by the assessee, which was much after the clearance of the goods and therefore, question of payment of interest does not arise as the duty was paid as soon as it was learnt that it was payable. 5. …….but this is the case wherein the assessee upon learning that the rates of the goods cleared were revised/escalated and therefore, they are liable to pay more duty than already paid at the time of clearance of the goods, has voluntaril....