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2022 (12) TMI 1107 - AT - Central ExciseInterest on differential duty- captive consumption - revenue neutrality - revised CAS-4 prepared by the cost accountant - grievance of the appellant stems from the claim that the provision for charging interest under section 11AB of Central Excise Act, 1944 is triggered only when suppression, fraud or misrepresentation has caused evasion of duty - HELD THAT:- It is clear that the decision in COMMISSIONER OF CENTRAL EXCISE, PUNE VERSUS M/S SKF INDIA LTD. [2009 (7) TMI 6 - SUPREME COURT] has firmly established the principle that arising from the liability for duties of central excise devolving on the assessee at the price existing at the time of clearance, notwithstanding subsequent receipt of differential, interest under section 11AB of Central Excise Act, 1944 would have to be discharged for termination of proceedings under section 11A of Central Excise Act, 1944 - On the other hand, in COMMR. OF C. EX., BANGALORE-III VERSUS BHARAT HEAVY ELECTRICALS LTD. [2010 (4) TMI 439 - KARNATAKA HIGH COURT], the principle established was that section 11AB of Central Excise Act, 1944 could not be invoked independently of section 11A of Central Excise Act, 1944 rendered superfluous owing to prompt discharge of tax liability on escalation of price. In the impugned proceedings, with confirmation of duty liability under section 11A of Central Excise Act, 1944, the claim of factual matrix identical with that in re Bharat Heavy Electricals Ltd does not find favour. Therefore, the liability to pay interest on duties short-paid at the time of clearance of goods for captive consumption does not get erased. The interest liability had not been discharged at the time of payment of differential duty and, hence, the essential precondition for dropping of further proceedings had not been complied with. Inevitably, the confirmation of differential duty necessarily has interest liability appended to it. Appeal dismissed.
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