2009 (4) TMI 66 - HC - Central Excise

Additional amount received by the assessee after the goods stood cleared from the factory gate on account of price escalation As a result of upward rise of the prices with retrospective effect the respondent-assessee paid difference of Excise duty - leviability of interest on the additional duty paid u/s 11AB in view of decision of SC in the case of M/s Rucha Engineering Pvt. Ltd. order passed by the Tribunal is set aside and the matter is remanded back to the Tribunal to consider the issue afresh and decide the same in accordance with law

Summary

The Punjab and Haryana High Court, comprising M.M. Kumar and H.S. Bhalla, JJ., addressed appeals under Section 35-G of the Central Excise Act, 1944, challenging an order by the Customs, Excise and Service Tax Appellate Tribunal dated January 15, 2008. The respondent-assessee had paid additional excise duty due to retrospective price increases for motor vehicle accessories, leading to a dispute over whether interest was chargeable on this additional duty under Section 11AB of the Act. The court noted that neither the Adjudicating Authority, the Commissioner (Appeals), nor the Tribunal had adequately considered the purchase order, a critical document, in their decisions.The court referenced a similar Supreme Court case, Commissioner of Central Excise, Aurangabad v. M/s Rucha Engineering Pvt. Ltd., where the Supreme Court ordered a remand for fresh consideration of whether interest was due from the date of the original invoice. Following this precedent, the High Court set aside the Tribunal's order and remanded the matter for reconsideration, allowing the parties to raise all pertinent issues. The court clarified that its order should not be seen as an opinion on the case's merits. The appeals were disposed of accordingly.