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2015 (10) TMI 1968 - AT - Central ExciseRecovery of interest - whether interest is recoverable with reference to the date of clearance of goods in cases where as a result of price escalation clause the prices are revised upward subsequent to the date of clearance of the respective goods - held that:- merely because the differential amount of duty is ascertained subsequent to the date of clearance, the due date of payment of duty never stands changed or extended and it would always relate to the date of removal of goods. Further, the Hon’ble Court held that the expression FOR under Rule 7(4) of Central Excise Rules, 2002 refers to the month for which the amount is determined pursuant to the finalisation of price and hence interest liability would commence from the month succeeding the day on which the duty was due and payable in relation to the goods cleared. The Hon’ble Supreme Court in that case followed its earlier decision in the case of SKF India Limited - [2009 (7) TMI 6 - SUPREME COURT ]. As regards the judgment of Karnataka High Court in the case of BHEL (2010 (4) TMI 439 - KARNATAKA HIGH COURT ), it is to state that Hon’ble Bombay High Court in case of Gammon India Limited v. Commissioner of Customs & Excise, Nagpur - [2013 (6) TMI 559 - BOMBAY HIGH COURT] has held that dismissal of SLP against the said Karnataka High Court judgment in case of BHEL (supra) was not sufficient to ignore the binding Supreme Court judgment in the case of SKF India Limited (supra) endorsed again by the Supreme Court in the case of International Auto Limited (2010 (1) TMI 151 - SUPREME COURT OF INDIA). While following the judgment of the Hon’ble Supreme Court in the case of SKF India Limited and International Auto Limited (supra) Bombay High Court clearly held that the judgment of Karnataka High Court does not reflect the good law in this regard as the SLP against that order was not dismissed by Supreme Court on merit. - Decided against assessee.
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