TMI Blog2017 (11) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... he duty paid initially by way of provisional assessment, determined through final assessment - appeal allowed - decided in favor of appellant. - Central Excise Appeal No.12580 to 12586 of 2013 - SM - A/13173-13179/2017 - Dated:- 17-10-2017 - Dr. D.M. Misra, Member (Judicial) Shri Jigar Shah, Advocate for the Appellants Dr. J. Nagori, A.R. for the Respondent-Revenue ORDER Per: Dr. D.M. Misra Heard both sides. 2. The limited question of law involved in the present appeal is: whether interest is leviable/payable under Rule 7(4) of Central Excise Rules, 2002 immediately from next month to the provisional assessment directed by the department or after finalization of the provisional assessment on determination of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of payment thereof. 7. The said Provision has been interpreted by the Hon ble Bombay High Court in CEAT Ltd.'s Case (supra). 33. We find from a reading of this judgment that the conclusion in the Larger Bench decision of the Tribunal cannot be applied to cases which are expressly noted in M/s. Ispat Industries Ltd. and Tata Motors Ltd. Rule 7 and its sub-rules if read together would denote as to how the Revenue secures itself against any provisional assessment. If on a provisional assessment, certain amount of duty is paid, but it is not accurate and correct, then, the final assessment is contemplated on a finalization of the assessment. Upon finalizing, it is possible that the Revenue will determine the duty liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid so. In the absence of any such stipulation in the Rules the dictum in the decision of the Hon ble Supreme Court in J.K. Industries Ltd. would apply. If that principle can be applied, then, there was no liability to pay interest. If the liability to pay interest between the time or the period of provisional assessment and payment of differential duty until the final assessment has to be read in the Rule, that is not possible. The interest in this case is not payable merely on equitable considerations. Such being the position, we do not find that the Tribunal was justified in dismissing the Assessee s Appeal. The Tribunal was also not justified in placing reliance upon its Larger Bench decision. The Larger Bench decision took assistance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construed in that manner. Hence, the words such amount is determined appearing in Rule 7(4) and such refund is determined in Rule 7(5) are crucial. The determination is thus a relevant factor. 8. The understanding of the said Rule 7(4) of Central Excise Rules,2002 would be more clearer, when a comparison is made with Section 18(3) of the Customs Act, 1962 which reads as under: 18(3) The importer or exporter shall be liable to pay interest, on any amount payable to the Central Government, consequent to the final assessment order or re-assessment order under sub-section (2), at the rate fixed by the Central Government under section 28AB from the first day of the month in which the duty is provisionally assessed till the date of pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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