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2017 (1) TMI 537 - CESTAT BANGALOREInterest on differential duty - Supplementary invoices - Time limitation - Held that: - Supreme Court of India in the case of CCE Vs. SKF India Ltd. reported in [2009 (7) TMI 6 - SUPREME COURT ] wherein it has been held that whenever the assessee recovered differential price by raising supplementary invoices and paid differential duty it implies that there was a short payment of duty though completely unintended and without any element of deceit and such payment of differential duty clearly came under sub-section (2B) of Section 11A and attract levy of interest under Section 11AB of the Act - the legal position is not in doubt that interest is liable to be paid from the date of original clearance of goods till the date of payment of differential duty on supplementary invoices. Regarding time limitation - when the normal time limit prescribed is one year from the relevant date for recovery of the principal amount, it is reasonable to adopt the same period for recovery of interest as well. Therefore in the instant case, we are of the view that Department should have initiated the proceedings for recovery of interest within a period of one year from the date of filing of monthly returns. Since the show-cause notice for payment of interest has been issued only on 20.01.2010 for recovery of interest for the period June 2007 to December 2007, it will be beyond the period of one year and therefore will be barred by limitation - Appeal allowed - decided in favor of the assessee.
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