2020 (3) TMI 452 - AT - Central Excise

Interest on demand - grievance of the appellant is that the lower authorities, while confirming the demands as held by the Tribunal, should not have confirmed the interest inasmuch as the period involved is the period when there were no interest provisions - further, it is submitted that, the interest, if at all, should have been charged for the period subsequent to passing of the adjudication order, inasmuch as the said amounts were deposited prior to the passing of the final order confirming the demand no liability would arise. HELD THAT - The challenge to the confirmation of interest, at this stage, would amount to challenging the earlier order of the Tribunal, which has attained finality. This Bench has no jurisdiction to sit in appeal over the earlier order of the Tribunal. If the appellant were of the view that no interest liability would arise against them, they should have contended so before the earlier bench or should have challenged the said order of the Tribunal - Inasmuch as the interest liability stands confirmed by the earlier order of the Tribunal, there are no reasons to interfere in the impugned orders of the authorities below, which are in conformity with the order passed by the Tribunal. Appeal dismissed.

Summary

Issues:
1. Confirmation of demands along with interest and penalties by lower authorities.
2. Appellant's request for refund of amounts after appeal allowed.
3. Grievance regarding confirmation of interest by lower authorities.

Analysis:
1. The judgment revolves around the confirmation of demands, interest, and penalties imposed by lower authorities on the appellant, engaged in manufacturing iron and steel products, amounting to around ?31 lakhs. The Tribunal, in its Final Order, set aside a majority of the demand but confirmed specific amounts along with interest and penalties. The appellant then sought a refund for the amounts allowed in their appeal. The original adjudicating authority granted the refund but upheld the demands and interest as per the Tribunal's decision.

2. The appellant's grievance primarily focuses on the interest confirmed by the lower authorities despite the period in question lacking interest provisions. The appellant argues that interest, if applicable, should only be charged from the date of the adjudication order onwards, as the amounts were deposited before the final order confirming the demand. The appellant contends that challenging the interest liability at this stage would essentially challenge the Tribunal's earlier order, which has already become final.

3. The Tribunal, after hearing the arguments, emphasized that contesting the interest liability now would essentially be an attempt to review the previous Tribunal decision, which is beyond the jurisdiction of the current Bench. The Tribunal clarified that if the appellant believed there was no interest liability, they should have raised this issue earlier or appealed the Tribunal's decision. Since the interest liability was confirmed in the earlier order, the Tribunal found no grounds to interfere with the lower authorities' decisions, which aligned with the Tribunal's order. Consequently, the appeal for challenging the interest liability was rejected.