9911796707
TMI Blog2015 (9) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... d accordingly, it was requested that the proceeding be dropped - Held that:- In our view, under sub-rule (4) the interest arises only from the first day of the month succeeding the month for which such amount is determined till the date of payment thereof and in our view, it is very clear and unambiguous that the interest liability arises only upon determination of the value or the duty by the adjudicating authority and only after determination this liability arises. In our view, merely because an application was not moved to the Assessing Officer and which the respondent-assessee did not move on such fact, no interest would be leviable nor penalty can be said to be leviable, though requirement of the Act/Rule needs to be fulfilled but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accordingly. 4. However, it transpires that the respondent-assessee did not request the Assessing officer for allowing the clearances of goods on provisional basis as required under Rule 7 of the Central Excise Rules, 2002. Accordingly, show cause notice was issued, as to why, as per the provision contained in Rule 7 of Central Excise Rules, interest of ₹ 9,775/- on the differential duty for the period July, 2001 to June, 2002 may not be levied Rule 7(4) of the Central Excise Rules, 2002. 5. The assessee submitted an explanation in which it was submitted that sub-rule (4) of Rule 7 makes it clear that the interest payment arises only from the first day of the month succeeding the month for which such amount is determined and ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so relied upon certain authorities. Accordingly, he allowed the appeal of the assessee and both interest as well as penalty was held not sustainable. 7. Dissatisfied with the deletion of the interest and the penalty, the revenue preferred an appeal before the Tribunal and ultimately the Tribunal also dismissed the appeal of the revenue upholding the order of the Commissioner (Appeals). 8. Mr. Vinay Mathur, ld. Counsel for the appellant submits that substantial question of law arises out of the order of the Tribunal. He would contend that under Rule 7, the assessee did not follow the procedure laid down under the Rule 7 of Central Excise Rules, 2002 and removed the goods on payment of duty determined on provisional value, it was requir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the form prescribed by notification by the Board with such surety or security in such amount as the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, deem fit, binding the assessee for payment of difference between the amount of duty as many be finally assessed and the amount of duty provisionally assessed. (3) The Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise as the case may be shall pass order for final assessment as soon as may be, after the relevant information, as may be required for finalizing the assessment, is available, but within a period not exceeding six months from the date of the communication of the order issued under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X
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