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2019 (10) TMI 1305 - AT - Central ExciseDemand of Interest on Differential Duty - Valuation - price variation clause - manufacture of transformers and parts thereof - HELD THAT - Hon ble Supreme Court decision in the case of SKF Limited 2009 (7) TMI 6 - SUPREME COURT was subsequently referred to three Judge Bench in the case of M/S. STEEL AUTHORITY OF INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, RAIPUR 2019 (5) TMI 657 - SUPREME COURT The three Judge Bench of the Hon ble Supreme Court in the case of SAIL has held that where the differential duty, on account of variation/enhancement in the price is paid subsequently, the interest element gets raised from the date when the duty was required to be paid till the date when it was paid. Appeal dismissed - decided against appellant.
Issues Involved: Determination of interest on differential duty paid subsequently due to price variation in contracts.
Analysis: The judgment by the Appellate Tribunal CESTAT ALLAHABAD, delivered by Hon'ble Mrs. Archana Wadhwa, Member (Judicial), pertains to three appeals with identical issues regarding the payment of interest on differential duty. The appellant, engaged in manufacturing transformers and parts, cleared goods under provisional invoices with price variation clauses in contracts. Upon finalization, the appellant paid differential duty through supplementary invoices, leading to a dispute on interest. The lower authorities relied on the Supreme Court's judgment in the case of CCE, Pune vs. SKF Ltd., holding against the appellant. The Tribunal noted that the Supreme Court's decision in the SKF Limited case was referred to a three-Judge Bench in the Steel Authority of India Limited case. The three-Judge Bench, in the SAIL case, held that interest on differential duty arises from the date duty was required to be paid till the date it was paid due to price variation. Given the Supreme Court's decision against the appellant, the Tribunal found no grounds to interfere with the lower authorities' orders and dismissed all three appeals.
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