2023 (6) TMI 1307 - AT - Central Excise

Interest on duty paid by way of supplementary invoices - period July 2005 to December 2009 - invocation of extended period of limitation - suppression of facts or not - payment of duty on the strength of supplementary invoices was well within the knowledge of the department or not - HELD THAT - Considering the fact that payment of duty on the strength of supplementary invoices was well within the knowledge of the department at the time of filing of ER-1 return showing payment of duty on the strength of supplementary invoices in that circumstances the extended period of limitation is not invocable in the facts and circumstances of this case. Therefore the demand of interest beyond the normal period of limitation is set aside. Also it is noted that the demand of interest within the period of limitation the appellant has already paid therefore nothing survives. Hence the demand of payment of interest within the period of limitation is confirmed. Appeal disposed off.

Summary

Issues Involved:
The judgment involves the demand of interest for the period July 2005 to December 2009 on duty paid through supplementary invoices, invoking the extended period of limitation.

Summary:

Issue 1 - Extended Period of Limitation for Demand of Interest:
The appellant, a manufacturer of steel items, paid duty on supplementary invoices during the relevant period, which was disclosed in their ER-1 returns and accepted by the Revenue. A show cause notice was issued in 2010 demanding interest for the period in question based on a previous court decision. The appellant argued that since the duty payment was known to the department when filing returns, the extended period of limitation for demanding interest was not valid. The department contended that interest was indeed due as per the court ruling. After hearing both sides, the Tribunal held that since the duty payment information was already with the department, the extended period of limitation was not applicable, and thus set aside the demand for interest beyond the normal limitation period.

Issue 2 - Payment of Interest within the Period of Limitation:
The Tribunal acknowledged that the appellant had already paid interest within the regular limitation period for the duty paid on supplementary invoices. Consequently, the Tribunal confirmed the demand for payment of interest within the period of limitation. The appeal was disposed of accordingly.