TMI Blog2011 (10) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... , JJ. Appearance Shri Sanjay Kalra, Appraiser (A.R.) for Respondents Per:- P.R. Chandrasekharan The appeal is directed against order-in-original 30/CEX/2009 dated 15.09.2009 passed by the Commissioner of Central Excise, Pune. 2. The facts arising for consideration in this case are as follows:- 2.1 M/s. Varroc Engineering Pvt. Ltd. are manufacturers of goods falling under Chapter No. 84, 85 and 87 of the First Schedule to the Central Excise Tariff Act, 1985. During scrutiny of the records of the appellant it was observed that the appellant had raised supplementary invoices for the price escalation received by them from their customers in respect of goods previously cleared by them. The assessee had paid the differential ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th October, 2011 and the case was called today but nobody appeared for the appellant. However, the appellant vide a fax dated 11.10.2011 made a submission that the case should be placed before a Division Bench as it involves liability of duty and interest thereon on account of retrospective rate amendments by the appellant's customers. I have gone through the appeal papers and find that the only challenge in this case is against the levy of interest under Section 11AB and there is no challenge in the appeal memo to the determination of any duty which has been paid by the appellant voluntarily. The amount of interest confirmed is only Rs.1,29,710/- which is well below the limit of Rs.10 lakhs prescribed for Single Member Bench cases. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Officer and, in that event, such assessee in default would not be served with the Demand Notice under Section 11A(1) of the Act. However, Explanation (2) to the sub-section makes it clear that such payment would not be exempt from interest chargeable under Section 11AB of the Act. What is stated in Explanation (2) to sub-section 2(B) is reiterated in Section 11AB of the Act, which deals with interest on delayed payment of duty. From the Scheme of Section 11A (2B) and Section 11AB of the Act, it becomes clear that interest is levied for loss of revenue on any count. In the present case, one fact remains undisputed, namely, accrual of price differential. What does differential price signify, It signifies that value, which is the functio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price differential arose on the basis of which the assessee claimed refund of excise duty which stood rejected by this Court on the ground that once the assessee had cleared the goods on classification, the assessee became liable to payment of duty on the date of removal and subsequent reduction in the prices for whatever reason cannot be made a matter of concern to the department insofar as the liability to excise duty was concerned. In the present case we are concerned with the imposition of interest which, as stated above, is charged to compensate the Department for loss of revenue. Be that as it may, as stated above, the Scheme of Section 11A of the Act has since undergone substantial change and, in the circumstances, in our view, the j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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