2015 (5) TMI 115 - AT - Central Excise

Demand of interest - Provisional assessment - Held that - Liability becomes enforceable from the date of demand. Therefore, during provisional assessment when the liability is in fluid stage nothing is crystal till finalization. Only from the date of finalisation of assessment the ultimate demand become enforceable. - if there is a default in payment of enforceable demand, interest flows thereon. - Decided in favour of assessee.

Summary

The judgment by Appellate Tribunal CESTAT CHENNAI states that interest liability arises from the date of default if there is a default to discharge the demand upon final assessment. The liability becomes enforceable from the date of demand, and interest flows in case of default in payment of enforceable demand. The appeal was allowed with consequential benefits to flow in accordance with the law.