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2019 (7) TMI 1777 - AT - Central ExciseLiability to pay differential interest under Section 11AB of the Central Excise Act - Price escalation clause - interest for the period when the Central Excise duty was due as per the original invoice, upto the date of payment of balance duty, under the supplementary invoice raised - HELD THAT:- The similar issue was considered by the Hon’ble Supreme court in Steel Authority of India Ltd. Vs. Commissioner of Central Excise, Raipur [2019 (5) TMI 657 - SUPREME COURT] where it was held that the interest was levied to be paid holding that the value of the goods which was only admittedly provisional at the time of clearing the goods is finally determined and it is on the said differential value that admittedly that differential duty is paid. We would think that while the principle that the value of the goods at the time of removal is to reign supreme, in a case where the price is provisional and subject to variation and when it is varied retrospectively it will be the price even at the time of removal. The fact that it is known, later cannot detract from the fact, that the later discovered price would not be value at the time of removal. Thus, the appellant is liable to pay interest - Learned Counsel states that the amount of pre-deposit made by them, exceeds the amount of interest payable under Section 11AB of the Act. Accordingly, the adjudicating authority are directed to verify the calculation of interest as submitted by the appellant and to refund the excess amount paid by the appellant (if any), with interest as provided under Section 35FF of the Act - appeal dismissed.
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