TMI Blog2012 (11) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... ed certain amount in respect of the goods already cleared. The respondents paid differential duty by issuing supplementary invoices. Show-cause notice was issued for demanding interest in respect of the differential duty paid from the date of clearance of the goods till the payment of differential duty. The adjudicating authority confirmed the demand and imposed the penalty under Sec. 11AC of the Central Excise Act. 4. On appeal filed by the respondents, the Commissioner (Appeals) set aside the demand of interest. 5. We find that the issue, whether the manufacture is liable to pay interest under Sec 11AB of the Central Excise Act in respect of the amount received in respect of the goods already cleared on account of price revision, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s own ascertainment or as ascertained by a Central Excise Officer and inform the Central Excise Officer in writing about the payment made by him and in that event he would not be given the demand notice under sub-section (1). But Explanation 2 to the sub-section makes it expressly clear that such payment would not be exempt from interest chargeable under section 11AB, that is, for the period from the first date of the month succeeding the month in which the duty ought to have been paid till the date of payment of the duty. What is stated in Explanation 2 to sub-section (2B) is reiterated in section 11AB that states where any duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded, the person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth, the Commissioner (Appeals) and the CESTAT have observed that the Assessee paid the duty on its own accord immediately when the revised rates became known to them from their customers. The differential duty was due at that time i.e. when the revised rates applicable with retrospective effect were learnt by the Assessee, which was much after the clearance of the goods and therefore, question of payment of interest does not arise as the duty was paid as soon as it was learnt that it was payable. Finding that provisions of section 11A (2) and 11A (2B) were not applicable as the situation occurred in the instant case was quite different, section 11AB (1) was not at all applicable, and therefore, the Assessee was not required to pay interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
