TMI Blog2018 (2) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... te of such determination and the date of payment. A plain reading of this provision does not confer jurisdiction to demand interest from the date of invoice - The appellant has discharged the liability to differential duty liability by raising supplementing voices and the finalization of provisional assessment was merely a confirmation of the differential duty leviable. Reliance placed in the case of CEAT Limited v, Commissioner of Central Excise & Customs, Nashik [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). Demand set aside - appeal allowed - decided in favor of appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw 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 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. 6. The said Provision has been interpreted by the Hon ble Bombay High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to order for final assessment is not a situation to be found in the present case. It is not the argument of the Revenue that what was paid by the Assessee as differential duty and prior to finalizing of the assessment, is not correct, accurate or proper computation of the liability. Having found that the final 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act of raising supplementary invoices and, then, paying the differential duty which enabled the Revenue to recover interest and relying on the substantive provisions. That is how both the judgments should have been read. If the Tribunal s conclusion is upheld, the Revenue would face proceedings for recovery of interest 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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