TMI Blog2014 (9) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 and without any element of deceit etc. The payment of differential duty thus clearly came under sub-section (2B) of section 11A and attracted levy of interest under section 11AB of the Act. Following decision of Commissioner of Central Excise, Pune Versus M/s SKF India Ltd. [2009 (7) TMI 6 - SUPREME COURT] - Decided against assessee. - C.M.A. No. 1436 of 2014 - - - Dated:- 28-8-2014 - R. Sudhakar And G. M. Akbar Ali,JJ. For the Appellant : Mr. C. Saravanan For the Respondent : Mr. P. Mahadevan JUDGMENT ( Del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owever, preferred an appeal to the Tribunal and the Tribunal disposed of the appeal by a short order, which reads as follows :- 4. We find that the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Pune Vs SKF India Ltd., reported in 2009 (239) ELT 385 (SC) held that payment of differential duty at a later date is clearly a case of short-payment of duty at the time of clearance and, therefore, interest is payable under Section 11 AB of Central Excise Act, 1944. The Hon'ble Supreme Court restored the order passed by the Assistant Commissioner insofar as charge of interest and also observed that there is no question of imposition of penalty. 5. Respectfully following the decision of the Hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the revision the assessee demanded from its customers the balance of the higher prices and issued to them supplementary invoices. At the same time it also paid the differential duty on the goods sold earlier. The Revenue took the view that the assessee was liable to pay interest on differential duty. The assessee was given a notice dated April 4, 2006 demanding ₹ 95,590/- as interest on delayed payment of duty under section 11AB of the Central Excise Act and further asking it to show cause why penalty may also not be imposed on it under section 37(3) of the Act. The assessee gave its reply stating that the payment of differential duty was made by it at the time of issuing supplementary invoices to the customers and, therefore, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Supreme Court in SKF's case (supra) is extracted hereinbelow for easy reference :- 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 and without any element of deceit etc. The payment of differen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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