2010 (12) TMI 214 - AT - Central Excise

Interest - Price escalation - The issue is no longer res integra as the same stands decided in favour of the Revenue by the Honrable Supreme Court in the case of CCE Pune vs.SKF India Ltd. reported in (2009 - TMI - 34092 - SUPREME COURT) - In this regard the order in original is restored

Summary

Issues involved: Whether interest is chargeable on duty paid supplementary invoices due to price escalation.

Analysis:
- The respondent did not appear despite prior notice, leading to the matter being decided ex-parte in accordance with Rule 21 of CESTAT (Procedure) Rules, 1982.
- The learned SDR argued that the issue had been settled in favor of the Revenue by the Supreme Court in a previous case.
- The main issue was whether interest under Section 11AB of the Central Excise Act, 1944 is payable on differential duty paid on goods cleared due to price escalation.
- The judge, after considering the submissions, found that the issue had been settled in favor of the Revenue by the Supreme Court in a previous case involving SKF India Ltd.
- Consequently, the impugned order was set aside, and the order in original was restored, allowing the Revenue's appeal.
- The cross objection was also disposed of during the judgment.