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2017 (7) TMI 755 - AT - Central ExciseDeletion of interest and penalty - demand of interest was on the ground that the assessments were provisional - The first appellate authority on an appeal set aside demand recording that there was no formal assessment procedure followed as per provision 7(i) of the Central Excise Rules, 2002 - Held that: - Though the appellant were declaring that the goods were being cleared to their sister concern was on provisional basis, there was no formal order from the Department that the assessment was being done on a provisional basis and with the procedure set forth under Rule 7 of CER 02 not being followed, the orders passed by the adjudicating authority demanding interest and penalty has no validity. The Tribunal in the case of TATA MOTORS LTD. Versus COMMISSIONER OF C. EX., PUNE-I [2008 (2) TMI 121 - CESTAT, MUMBAI], took a consistent view that prior to 01.03.2016, provisions of Rule 7(4) will be applicable only if there is any order of final assessment i.e. to say that the interest liability on an assessee will arise only if there is order of finalization of provisional assessment. The order of first appellate authority are in consonance with the provisions of Rule 7 of Central Excise Rules, 2002 - appeal dismissed - decided against Revenue.
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