Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

Hindalco Industries Limited (Unit : Birla Copper) Versus C.C.E. & Customs, Vadodara

2017 (11) TMI 761 - CESTAT AHMEDABAD

Liability of interest - Provisional assessment - 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 the duty? - Held that: - In sub Section (3) of Section 18 of the Customs Act,1962 it is clearly laid down that interest would be payable after the provisional assessment is directed ,whereas under sub Rule ( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nue 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 the duty. 3. The Ld. Advocate for the appellant submits that the aforesaid question has been answered in favour of the assessee by the Hon ble Bom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

at interest is leviable after expiry of one month from the date of provisional assessment directed by the proper officer. 5. Heard both the sides and perused the records. 6. Before analyzing the principle of law laid down by the judiciary, it is relevant to reproduce Rule 7(4) of Central Excise Rules, 2002 as was in force during the relevant period, which reads as: Rule 7. Provisional assessment.- (1)……. (2)…….. (3)……. (4) The assessee shall be liable to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 finalizi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee in the present case that the later part of sub-rule (4) is not attracted. The liability to pay interest on any amount payable to Central Government consequent to order for final assessment under Rule 7 sub-rule (3). We are in agreement with the assessee in the present case that the later part of sub-rule (4) is not attracted. The liability to pay interest on any amount payable to Central Government consequent to order for final assessment is not a situation to be found in the present case. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lization of the assessment, then, the Rule would have specifically said 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. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d provided there is a satisfaction reached in terms of that provision. That notice need not be issued in the cases which are dealt with by sub-section (2B) as held in SKF India Ltd. (supra). Therefore, that sub-section together with the proviso and explanation making specific provision for recovery of interest and enabling the Revenue to recover it, that the Hon ble Supreme Court reached a conclusion that on price revision the Assessee was liable to pay interest on the differential duty. That wa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version