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TMI Blog2014 (9) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... rential duty was paid only later when the assessee issued supplementary invoices to its customers demand the balance amounts. Seen thus it was clearly a case of short-payment of duty though indeed completely unintended and without any element of deceit etc. The payment of differential duty thus clearly came under sub-section (2B) of Section 11A and attracted levy of interest under Section 11AB of the Act - as held by the Apex Court in the case of SKF India Limited (2009 (7) TMI 6 - SUPREME COURT). Decided in favour of Revenue. - Tax Appeal Nos. 534-535 of 2011 - - - Dated:- 9-12-2011 - Akil Kureshi and Sonia Gokani, JJ. Shri R.J. Oza, Sr. Counsel, for the Appellant. Shri Paresh M. Dave, for the Respondent. ORDER Being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Revised purchased orders were issued subsequently and supplementary invoices were raised as well. 3. As noted by the Tribunal, the disputes concerns interest leviable on differential duty paid subsequently on the supplementary invoices. The Tribunal after considering the same on the judgment of this Court and that of Karnataka High Court and dismissed the appeal. The impugned order is challenged proposing the aforementioned question of law. 4. Learned counsel candidly pointed out that the identical questions have been decided in Tax Appeal No. 185 of 2008, allowing the appeal of Revenue and setting aside the order of Tribunal. 5. On perusal of the order passed in Tax Appeal No. 185 of 2008, this Bench while adjudicating the iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urangabad Bench, in its decision in Commissioner of Central Excise, Aurangabad v. M/s. Rucha Engineering Pvt. Limited [First Appeal No. 42 of 2007] that was relied upon by the Tribunal for dismissing the Revenue s appeal took the view that there would be no application of Section 11A(2B) or Section 11AB where differential duty was paid by the assessee as soon as it came to learn about the upward revision of prices of goods sold earlier. In M/s. Rucha Engineering, the High Court observed as follows : It is evident that the Section 11AB comes into play if the duty paid/levied is short. Both, the Commissioner (Appeals) and the CESTAT have observed that the assessee paid the duty on its differential duty was due at that time, i.e., when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed in subsequent decision in the case of CCE v. International Auto Limited (supra), The Apex Court observing that the differential price signified that value, which is the function of the price, on the date of removal/clearance of the goods was not correct. It was further observed that the when the differential duty is paid after the date of clearance, it indicates short payment/short levy on the date of removal, hence interest which is for loss of revenue, becomes leviable under Section 11AB of the Act. Here again, the decision of the Bombay High Court in the case of Rucha Engineering Pvt. Limited (supra) was not approved. Section 11AB of the Central Excise Act, 1944 reads as under :- 11AB. Interest on delayed payment of duty. - (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Finance Bill, 2001 receives the assent of the President. Explanation 1 : Where the duty determined to be payable is reduced by the Commissioner (Appeals), the Appellate Tribunal National Tax Tribunal or, as the case may be, the Court, the interest shall be payable on such reduced amount of duty. Explanation 2 : Where the duty determined to be payable is increased or further increased by the Commissioner (Appeals), the Appellate Tribunal National Tax Tribunal or, as the case may be, the Court, the interest shall be payable on such increased or further increased amount of duty. To our mind, facts on material aspects are similar in the present case. It is of course true that a part of the price received by the assessee for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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