2014 (8) TMI 403 - AT - Central Excise

Demand of interest on differential duty - Section 11AB - Escalation in prices - Held that - Supreme Court in the case of CCE Pune Vs SKF India Ltd. held that interest is payable on payment of differential duty at later date on retrospective revision of price. On the similar issue, the Hon ble Supreme Court in the case of CCE Vs International Auto Ltd. following the earlier decision passed in the case of SKF Ltd. (2009 (7) TMI 6 - SUPREME COURT) allowed the appeal filed by Revenue. In view of that, I do not find any infirmity in the order of the Commissioner (Appeals) - Decided against assessee.

Summary

The Appellate Tribunal CESTAT CHENNAI rejected appeals by appellants who raised supplementary invoices based on price escalation clauses, as interest on differential duty was demanded and upheld by the Commissioner (Appeals) citing Supreme Court rulings.