TMI Blog2017 (12) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... y’ i.e. the when the duty paid initially by way of provisional assessment, determined through final assessment. The said Provision has been interpreted by the Hon’ble Bombay High Court in CEAT Ltd.’s Case [2015 (2) TMI 794 - BOMBAY HIGH COURT], where it was held that The liability to pay interest arises on any amount payable to Central Government and consequent to order for final assessment under Rule 7 subrule (3). Appeal allowed - decided in favor of appellant. - E/13980/2013-SM - A/13207/2017 - Dated:- 16-10-2017 - Dr. D.M. Misra, Member (Judicial) For Appellant: Sh. Jigar Shah (Advocate) For Respondent: Sh. S.N. Gohil, A.R. (Addl. Commissioner) ORDER Per: Dr. D.M. Misra Heard both sides. 2. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay interest on any amount payable to Central Government, consequent to order for final assessment under sub-rule (3), at the rate specified by the Central Government by notification issued under section 11AA or section 11AB of the Act from the first day of the month succeeding the month for which such amount is determined, till the date 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 deno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment resulted in nothing due and payable to the Government, we do not find any justification then to recover interest. If the interest was to be recovered and was indeed payable on the date on which the Assessee made payment of differential duty and prior to finalization 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, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st on the entitlement to refund in cases covered by Rule 7(5) of the Rules. If the differential duty paid and prior to finalization of assessment exceeds the duty leviable in law, then, on final assessment the Assessee is entitled to refund. He may interest on the sum refunded from the date of payment. However, Rule (6) cannot be 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 ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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