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TMI Blog2015 (10) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... ant filed appeal against Commissioner's order dt.31.10.2007. 3. The brief facts of the case are that the issue relates to demand of interest on the belated payment of differential duty by the appellant for the period from November 2005 to December 2006. Consequent on Tribunal's order dt.4.8.2005 wherein the Tribunal upheld merit of the case, the appellants on their own discharged the duty on the higher value and subsequently worked out correct value as per CAS-4 for every quarter and paid differential duty in the following month. The adjudicating authority issued notice dt.8.8.2007 demanding interest on the differential duty paid during the above period. In the impugned order, the adjudicating authority confirmed the demand o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l duty. Therefore any belated payment of duty paid as per Section 11A (2B), interest is automatic and payable under section 11AB. Accordingly, interest has been rightly demanded. Appellants have not opted for provisional assessment. They started paying duty on their own on the higher value and subsequently they paid differential duty as per CAS-4 formula. He submits that interest is payable from the date of Tribunal's order. He relied on the following citations :- (i) CCE Pune Vs SKF India Ltd. 2009 (239) ELT 385 (SC) (ii) Gammon India Ltd. Vs CCE Nagpur 2012 (290) ELT 171 (Bom.) (iii) CCE Vs International Auto Ltd. 2010 (250) ELT 3 (SC) 6. Heard both sides. The short issues in this case is demand of interest payable on the differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement or suppression of facts, or contravention of any of the provisions of the Act or of Rules made thereunder with intent to evade payment of duty; that is to say, it is intentional, deliberate and/or by deceitful means. Naturally, the cases failing in the two groups lead to different consequences and are dealt with differently. Section 11A, however allow the assessees in default in both kinds of cases to make amends, subject of course to certain terms and conditions. The cases where the non-payment or short payment etc. of duty is by reason of fraud collusion etc. are dealt with under sub-section (1A) of Section 11A and the cases where the non-payment or short-payment of duty is not intentional under sub-section (2B). 10. Sub-section (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred payment of duty for whatever reasons. 11. The payment of differential duty by the assessee at the time of issuance of supplementary invoices to the customers demanding the balance of the revised prices clearly falls under the provision of sub-section (2B) of Section 11A of the Act. 12. The Bombay High Court, Aurangabad Bench, in its decision in The Commissioner of Central Excise, Aurangabad v. M/s. Rucha Engineering Pvt. Ltd., (First Appeal No. 42 of 2007) that was relied upon by the Tribunal for dismissing the Revenues 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s customers demanding 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. 15. for the reasons discussed above we set aside the judgments and orders passed by the Tribunal and the Commissioner (Appeals). We restore the order passed by the Assistant Commissioner in so far as charge of interest is concerned. On the facts of this case there is no question of imposition of any penalty. Hence, that part of the order of the Assistant Commissioner is set aside." 7. Further the Hon'ble Supreme Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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