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2017 (12) TMI 143 - AT - Central ExciseRelevant date for calculation of interest - finalization of provisional assessment - whether interest is leviable/payable u/r 7(4) of CER, 2002 immediately from next month to the provisional assessment directed by the department or after finalization of the provisional assessment on determination of the duty? - interpretation of statute - Held that: - In sub Section (3) of Section 18 of the Customs Act, 1962 it is clearly laid down that interest would be payable after the provisional assessment is directed, whereas under sub Rule (4) of Rule 7of Central Excise Rules,2002 the interest would be attracted only on ‘determination of duty’ i.e. the when the duty paid initially by way of provisional assessment, determined through final assessment. The said Provision has been interpreted by the Hon’ble Bombay High Court in CEAT Ltd.’s Case [2015 (2) TMI 794 - BOMBAY HIGH COURT], where it was held that The liability to pay interest arises on any amount payable to Central Government and consequent to order for final assessment under Rule 7 subrule (3). Appeal allowed - decided in favor of appellant.
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