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2023 (12) TMI 306 - AT - Central ExciseChargeability of interest in terms of rule 7 of Central Excise Rules, 2002 following confirmation of demand on finalization of provisional assessment - assessments were rendered as provisional under rule 9B of Central Excise Rules, 1944, the finalization occurred after Central Excise Rules, 2002 came to into effect - HELD THAT:- The issue pertaining to leviability of interest on finalization of provisional assessment, in all cases pertaining to clearances prior to 2001, has been set at rest by the Central Board of Indirect Taxes & Customs (CBIC) circular no. 354/66/2001-TRU dated 21st June 2021 where it was held that In Rule 7 relating to provisional assessment, provision has also been made for charging of interest or for allowing refund, as the case may be. It may be clarified that these will apply to cases in which provisional assessment is resorted to on or after 1-7-2001 and not to past cases of provisional assessment even if the assessments are finalized on or after 1-7-2001. Furthermore, in another dispute of theirs decided by the Tribunal, in CADBURY INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-I [2009 (1) TMI 701 - CESTAT, MUMBAI], it was held that interest will be payable from 1-7-2001 from which date these rules became effective. The Hon’ble High Court of Bombay, in M/S. DGP HINODAY INDUSTRIES LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-1 [2012 (3) TMI 327 - BOMBAY HIGH COURT] has clearly held that interest liability would arise only when the assessments were made provisional after the new rules came into existence. The impugned order does not sustain and is accordingly set aside - Appeal allowed.
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