TaxTMI 
TaxTMI 
2018 (6) TMI 78
X X X X Extracts X X X X
X X X X Extracts X X X X
....pellant had raised supplementary invoices on account of price variation and paid the Central Excise duty. However, the interest amounting to Rs. 89,809/- during the period August, 2013 to March 2014 was not paid on delayed payment of duty on account of supplementary invoices. Show cause notice dated 19.05.2014 was served on the appellant calling him upon to explain as to why interest of Rs. 89,809/- on the said delayed payment should not be recovered from them under Section 11A of Central Excise Act, 1944 and penalty should not be imposed under Section 25 of the Act. After giving him the opportunity of being heard, the Deputy Commissioner vide his order dated 30th April, 2015 had directed to recover the said amount of interest and had also ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....AA of the Act is that the interest is levied for loss of revenue on any count. It is also impressed upon that the date of removal of the goods is the criteria to ascertain the value. Accordingly, the enhanced duty can be levied in case, there is change in price and the same can be made payable only alongwith interest. Appeal is accordingly, prayed to be rejected. 5. After hearing both the parties & perusing the entire record of the appeal, I am of the considered view that it is an admitted fact that the appellant had paid the duty on the value at the time the goods in question were removed from his premises. It is also an admitted fact that there was a supplementary invoice due to price escalation on account of increase in input labour and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uty on the goods cleared by it on the basis of invoice placed indicating the value of these goods and as on the date of clearance of the goods, it cannot be disputed that the price declared in the said invoice was transaction value of the goods in terms of Section 4 of the Central Excise Act in as much as that was the price fixed between parties at which the goods were to be supplied at the time and place of removal. The occasion for differential duty arises at a later date due to price variation clause in the contract for sale. The moment the assessee received the enhanced price due to price escalation, it paid the amount for differential period on its own immediately on receipt of the said price. The decision of Bombay High Court in the c....