Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2015 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 404 - RAJASTHAN HIGH COURTLevy of interest on payment of differential duty - valuation - clearance of goods on provisional price basis without opting for provisional assessment - assessee submitted an explanation in which it was submitted that sub-rule (4) of Rule 7 makes it clear that the interest payment arises only from the first day of the month succeeding the month for which such amount is determined and according to the assessee, it was to be determined from the date of finalization of the provisional assessment and not the date of payment of final duty, it was submitted that neither interest nor penalty is leviable and accordingly, it was requested that the proceeding be dropped - Held that:- In our view, under sub-rule (4) the interest arises only from the first day of the month succeeding the month for which such amount is determined till the date of payment thereof and in our view, it is very clear and unambiguous that the interest liability arises only upon determination of the value or the duty by the adjudicating authority and only after determination this liability arises. In our view, merely because an application was not moved to the Assessing Officer and which the respondent-assessee did not move on such fact, no interest would be leviable nor penalty can be said to be leviable, though requirement of the Act/Rule needs to be fulfilled but in this particular case, it would be too technical to come to the said conclusion that the application was not moved by the assessee and it becomes fatal. - Demand of interest and penalty set aside - Decided in favor of assessee.
|