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2015 (11) TMI 206 - AT - Central ExciseDemand of interest on payment of differential duty - price escalation clause - Supplementary invoices - diversion decisions on the issue - Held that:- in case of Bharat Heavy Electricals Ltd. (2010 (4) TMI 439 - KARNATAKA HIGH COURT ), the facts are absolutely identical to the facts of the present case. As the supply made to the railways and the prices at the time of clearances is not decided due to the reason that the price index which is published periodically and not available on day to day basis. The finalization of price takes place only after publication of RBI price index as per escalation and de-escalation clause. The supplementary invoices are raised subsequent to the clearance of the goods only after RBI publication of the price index therefore payment of excise duty is not made at the time of clearance of goods. In all other cases which was relied upon by the Revenue facts are different. Therefore when there are diversion decisions on the issue then in my view the judgment which is based on the identical facts has to prevail. In this position, following the ratio of Hon'ble Karnataka High Court in the case of Bharat Heavy Electricals Ltd. (supra) which has been upheld by the apex court [2010 (12) TMI 1144 - SUPREME COURT], I am of the view that interest on difference arising due to the price escalation as per the RBI price index the interest on duty is not chargeable, therefore impugned order is set aside - Decided in favour of assessee.
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