2016 (11) TMI 1384 - AT - Central Excise

Liability of interest - price escalation clause - whether interest is payable on differential duty paid on account of price escalation clause? - Held that - reliance placed in the case of M/s. Steel Authority of India Ltd. Versus Commissioner of Central Excise, Raipur 2015 (12) TMI 594 - SUPREME COURT , where similar issue was raised and it was held that as on the date of clearance when excise duty was paid, it could not be treated as short paid on the said date. As a consequence when the principal amount, namely, the excise duty itself was not payable (i.e. on the differential) on the date of clearance of the goods, there cannot be any question of law to pay interest - this appeal is remanded to the original authority to await the final view and judgment taken by the Hon ble Apex Court in the matter and to adjudicate the matter on denove basis accordingly - appeal allowed by way of remand.

Summary

The judgment by Appellate Tribunal CESTAT Hyderabad dealt with the issue of interest on differential duty paid due to price escalation clause. The appeal was remanded to the original authority to await a final decision from the Supreme Court. The appeal was allowed by way of remand.