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M/s MM Forgings Ltd Versus Commissioner of Central Excise, Madurai

2015 (6) TMI 223 - CESTAT CHENNAI

Demand of interest - Delayed payment of duty - Supplementary invoices - Held that:- appellant has paid the differential duty against the supplementary invoices raised by them. Further, they have failed to pay the interest. The issue has been settled by the Hon'ble Supreme Court in the case of SKF India Ltd. (2009 (7) TMI 6 - SUPREME COURT) and International Auto Ltd. (2010 (1) TMI 151 - SUPREME COURT OF INDIA). No infirmity in the impugned order - Decided against assessee. - E/421/2007 - Dated:- .....

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8377; 31,944/, which was upheld by the Commissioner (Appeals). 3. The Ld. AR reiterated the findings of the Commissioner (Appeals) and the adjudicating authority. He relied on the following decisions of the Hon'ble Supreme Court in support of his contention. - CCE, Pune Vs. SKF India Ltd. 2009 (239) ELT 385 (S.C) - CCE Vs. International Auto Ltd. 2010 (250) ELT 3 (S.C.) 4. After hearing the Ld. AR and on perusal of the records, I find that the short issue in this case relates to demand of in .....

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. Further, they have failed to pay the interest. The issue has been settled by the Hon'ble Supreme Court in the case of SKF India Ltd. (supra) and International Auto Ltd. (supra). The relevant portion from International Auto Ltd., is reproduced below:- "8. Section 11A of the Act deals with recovery of duty not levied or not paid or short-levied or short-paid. The said section, which stood inserted by Act 25 of 1978, underwent a sea-change when Parliament inserted major changes in that s .....

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s ascertained by a Central Excise 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) .....

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e of clearance, hence, enhanced duty. This enhanced duty is on the corrected value of the goods on the date of removal. When the differential duty is paid after the date of clearance, it indicates short-payment/short-levy on the date of removal, hence, interest which is for loss of revenue, becomes leviable under Section 11AB of the Act. In our view, with the entire change in the Scheme of recovery of duty under the Act, particularly after insertion of Act 14 of 2001 and Act 32 of 2003, the judg .....

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