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2016 (11) TMI 514 - CESTAT BANGALORE

2016 (11) TMI 514 - CESTAT BANGALORE - TMI - Demand of interest - the date specified in the supplementary invoices on 11.2.2011 for the period from September 2004 to December 2006 - time bar - Held that: - the show-cause notice is held to be time barred, if issued beyond the period of one year - show-cause notice was issued after the expiry of 4 years 4 months, the entire demand of interest is beyond the period of limitation - reliance placed on the decision of the case of PARAMOUNT RUBBER INDUS .....

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r S. S. Garg The present appeal is directed against the impugned order dated 14.3.2012. 2. Briefly the facts of the present case are that the appellant is a manufacturer of CI castings falling under Chapter 73 of CETA. The customers place orders for castings for a period from one year to 2 year as per the price agreed upon which is specified in the purchase order. During the period of operation, cost of the final product increases by virtue of cost of input, fuel, electricity, labour, etc., in s .....

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e was issued demanding interest covering the date specified in the supplementary invoices on 11.2.2011 for the period from September 2004 to December 2006. Based on the decision of the apex court in the case of CCE vs. SKF Ltd. and thereafter the adjudicating authority confirmed the demand of interest and also penalty. Aggrieved by the said order, appellant filed appeal before the Commissioner (A) who confirmed the Order-in-Original and hence the present appeal. 3. I have heard the learned couns .....

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ld that the demand for interest on differential duty paid consequence to the issue of supplementary invoices is subjected to the bar of limitation. 4.1 Similar issue has also been considered in the following case laws: (a) M/s. UCAL Fuel Systems Ltd. vs. CCE reported in 2010-TIOL-127-CESTAT-MAD. (b) CC vs. T.V.S. Whirlpool Ltd. reported in 1996 (86) E.L.T. 144 upheld by the Hon ble Supreme Court as reported in 2000 (119) E.L.T. A177 (S.C.) 5. On the other hand, the learned DR submitted that ther .....

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ntial duty also stands paid. The question before us is whether interest is required to be paid on such differential duty. If so from what date the interest is liable to be paid and finally whether the show-cause notice issued for recover of interest is hit by time-bar inasmuch as the same has been issued beyond the normal period of time limit of one year available under Section 11A of the Central Excise Act. 6.1 The question of liability for payment of interest has been considered at length and .....

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ion 11AB of the Act. The apex court further reiterated and amplified the above position in the case of CCE vs. International Auto Ltd.: 2010 (250) E.L.T. 3 (S.C.). However, the apex court in the case of Steel Authority of India Ltd. vs. CCE, Raipur: 2015 (326) E.L.T. 450 (S.C.) has proposed that the question of chargeability of interest is to be referred to Larger Bench of the Apex Court. However since the issue is pending, the legal position is not in doubt that the interest is liable to be pai .....

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