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2017 (9) TMI 1172 - AT - Central ExciseDemand of interest - suo moto payment of differential duty - case of Revenue is that since it was a case of delayed payment of the duty, the interest was payable by the appellant - extended period of limitation - Held that: - the Department has issued a SCN dt. 13.08.2010 for interest on the differential duty paid voluntarily by the appellant on their own. Differential duty was paid on 10.07.2007. The SCN has been issued beyond the period of limitation. However, the extended period has not been invoked in the SCN nor is there any allegation in that regard. In the SCN, penalty has also been proposed but again there is no basis given for imposition of penalty in the SCN. Hon’ble High Court of Delhi in the case of Kwality Ice Cream Company Vs. UOI [2012 (1) TMI 88 - Delhi High Court] that the period of limitation that applies to a claim for the principal amount should also apply to the claim of interest thereon. In this case too, the extended period has not been invoked in the SCN and the entire demand is beyond the period of limitation - demand of interest not sustainable - appeal allowed - decided in favor of appellant.
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