TMI Blog2023 (7) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act read with the Rules - further no case of short payment of duty is made out. It is only when the Appellant obtained fresh cost certificate for the next six months period, and found that there is some escalation in the cost, has suo moto deposited the differential duty though they were not under obligation to pay any additional amount. Further, under the facts and circumstances, whatever duty the Appellant would have paid was available to their sister unit as Cenvat credit. Thus, the situation is wholly revenue neutral. Impugned order set aside - appeal allowed. - Excise Appeal No. 299 of 2012 - FINAL ORDER No. A/30181/2023 - Dated:- 17-7-2023 - HON'BLE MR. ANIL CHOUDHARY , MEMBER ( JUDICIAL ) And HON BLE MR. A. K. JYOT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty payable as per instructions is paid and hence there is no short payment of duty at any point of time and hence liability to pay interest does not arise. (b) The clearances are inter-unit transfers. Their own recipient unit would avail Cenvat credit of any duty paid or payable. Transaction being revenue neutral, interest being compensatory in nature for revenue loss suffered, in the instant issue of interest liability does not arise. 6. Learned Adjudicating Authority and Appellate Commissioner held that interest is payable relying on the following decisions. a) CCE, Pune vs SKF India [2009 (239) ELT 385] b) Bimetal Bearings Ltd vs CCE, Chennai [2010 (18) STR 539] c) Lucas TVS Ltd vs CCE, Chennai [2009 (333) ELT 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value includes in its fold all amounts receivable on account of Sale. Lucas TVS decision and International Auto Ltd also involve sale transaction only 12. The appellants submit that SKF decision was distinguished by Hon ble HC of Mumbai in CEAT Ltd 2015 (317) E.L.T. 192 (Bom.). The SLP filed by Department stands dismissed by SC in Commissioner v. CEAT Limited - 2016 (342) E.L.T. A181 (S.C.). 13. The Scope of Hon ble SC decision in SKF India Ltd case has also to be seen in the context of Hon ble SC observations at para 8 in SAIL India, 2019 (366)ELT 769 (SC). It is apparent that Hon ble SC itself made an observation that the issue they are considering is limited to certain facts mentioned therein. 14. The appellants also relies on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants on this score. Reliance is placed on the following decided issues- (a) CCE, Hyderabad vs Mahalakshmi Profiles Ltd [2012 (279) E.L.T. 355 (A.P.)] (b) CC, Customs vs Saurashtra Cement Ltd [2010 (260) E.L.T. 71 (Guj.)] 18. In view of the foregoing, Appellant prayed that the Tribunal may be pleased to set aside the impugned Order and pass such other order or orders as may be deemed fit in the interest of justice.Learned DR for Revenue relies on the Impugned Order. 19. Learned DR further points out that the applicability of interest in the matter of additional consideration pursuant to price escalation have been settled by the Hon ble Supreme Court in the case of Steel Authority of India Ltd vs CCE, Raipur [2019 (366) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer A invokes Rule 7. It seeks permission for removal of goods on provisional assessment. Though an order of final assessment has to be passed within a period of time it is capable of being extended without any time-limit. Manufacturer-A on the basis of upward revision of the price with retrospective effect and acknowledging the value to be the value as provisionally assessed and as enhanced by the escalation arrived at under the escalation clause pays the duty when the escalation comes into effect on the difference in the value under Rule 7. Apart from payment of the differential excise duty manufacturer A becomes also liable to pay interest from the date when the escalation would come into play on the arrival at the higher price having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onerate. Thus, we find that the Appellant has paid the correct duty as per the scheme of the Act read with the Rules. We further find that no case of short payment of duty is made out. It is only when the Appellant obtained fresh cost certificate for the next six months period, and found that there is some escalation in the cost, has suo moto deposited the differential duty though they were not under obligation to pay any additional amount. Further, under the facts and circumstances, whatever duty the Appellant would have paid was available to their sister unit as Cenvat credit. Thus, the situation is wholly revenue neutral. 22. In view of the aforementioned findings, we allow this Appeal and set aside the Impugned Order. The Appellant s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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