TMI Blog2012 (7) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue. Ms. Maithili, Advocate for the appellant. In these appeals filed by the department, the short question rising for consideration is whether, on the differential amount of duty paid by the respondent (hereinafter referred to as the assessee), interest under Section 11AB of the central Excise Act is recoverable for the period from the date of clearance of the goods to the date of payment of differential duty. It is not in dispute that the assessee originally paid duty on the goods in terms of the price originally agreed with the buyers. Subsequent to the clearance of the goods, apparently, the price escalation clause of the contract was invoked and the seller and the buyer agreed for an increase. The assessee (seller) issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra on the issue, she has raised the plea of limitation against the demand of interest. In this connection, she has claimed support from the Tribunal s decision in Emco Ltd. vs. Commissioner: 2011 (272) E.L.T. 136 (Tri.-Mumbai) wherein, relying on a judgment of the apex court, the Tribunal held that any demand for recovery of interest should be raised within one year. Before parting with the matter, the learned counsel has also referred to para 19 of the High Court s judgment in the Presscom Products case, drawing support to her preliminary plea based on National Litigation Policy. In her rejoinder, the learned Superintendent (AR) opposes the plea of limitation and relies on ASN Steel Tubes Ltd. vs. Commissioner: 2011 (265) ELT 127 (Tri.-Del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of duty determined under sub-section (2B) of Section 11A. It however does not prescribe any period of limitation for the purpose of recovery of such interest. In my considered view, this is because the liability to pay interest on duty is co-extensive with the liability to pay the duty itself. In other words, it is a continuing liability. Where the liability is a continuing liability, the statute may not prescribe a period of limitation. This apart, there are judgments of the apex court to the effect that interest on tax is automatic. If the tax is not paid on or before the due date, interest thereon will accrue to the revenue. The cumulative effect is that the department is entitled to demand interest on an amount of duty at any tim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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