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2016 (9) TMI 481 - AT - Central ExciseJob-work - Whether excess paid duty can be adjusted against the short paid duty, essentially when the assessment is provisional - appellant during the disputed period have short paid ₹ 38,36,604/- and also excess paid duty to the tune of ₹ 30,44,912/- with regard to the same product, namely, unprocessed man maid fabrics. Thus, in effect short paid duty is only to the tune of ₹ 7,91,692/-, against which the appellant claimed that they have already deposited ₹ 7,93,582/-. Held that:- by respectfully following the decision of Larger Bench of this Tribunal in the case of Hindustan Zinc Ltd. vs CCE Jaipur-II [2015 (11) TMI 953 - CESTAT NEW DELHI (LB)] which was relied on the judgment of Hon’ble Karnataka High Court in the case of Toyota Kirloskar Auto Parts India Pvt. Ltd. vs CCE [2011 (10) TMI 201 - KARNATAKA HIGH COURT] held that adjustment is possible and after adjustment if any further amount is payable, on that amount the interest liability is required to be discharge. Therefore, the adjustment of excess duty against short fall in the duty liability is permissible under the law. However, in the present case since after adjusting the duty liability from the excess paid duty further amount is payable by the appellant, which was subsequently, we are of the view that the interest liability is required to be discharged for short payment of such duty. So far as computation of the interest and liability is concerned, we find that the Hon’ble Allahabad High Court in the case of Bharat Heavy Electricals vs CCE Kanpur [2015 (8) TMI 1055 - ALLAHABAD HIGH COURT] has held that wherever there is short payment of duty the interest liability shall be payable for the period when the duty was short paid. Thus, in this case wherever the duty liability for the respected month has been short paid by the appellant, interest liability is required to be discharged. Since the interest liability has not been properly computed by the adjudicating authority, we are of the view that the matter shall be remanded to the original authority for quantifying the interest liability. - Appeal disposed of
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