9911796707
TMI Blog2008 (4) TMI 756X X X X Extracts X X X X X X X X Extracts X X X X ..... n the second category, two cases where there was no provisional assessment were considered. The dispute in this appeal relates to first category of cases. As regards the second category of cases, the learned Commissioner held that the assessee was liable to pay interest in terms of sub-section (2B) of Section 11-AB of the Central Excise Act. It was stated by the assessee's counsel that the said part of the order, which was adverse to the assessee, stands set aside by this Tribunal. This, however, has no bearing on the dispute involved in the present appeal. 3. As indicated above, the appeal relates to 13 cases in which assessments were provisionally made in terms of Rule 7 of the Central Excise Rules 2002 Rule 7 provides that where t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les read with Section 11 AB of the Act. Rule 7(4) runs as follows:- The assessee shall be liable to pay interest on any amount payable to Central Government, consequent to order for final assessment under sub-rule (3), at the rate specified by the Central Government by notification issued under section 11AA or section 11AB of the Act from the first day of the month succeeding the month for which such amount is determined, till the date of payment thereof. From a bare reading, it is manifest that the assessee is liable to pay interest from the first day of the month succeeding the month for which assessment is made and the amount of duty is determined. The expression consequent to order for final assessment in the rule, in my o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e finally assessed and the amount of duty provisionally assessed. If the assessee had paid lesser amount as duty than what he was liable to pay at the time of provisional assessment, he cannot be absolved of the liability to pay interest on the differential amount when the final assessment is made. In the case of short payment, the person is always liable to pay interest on the differential amount as if he had never paid correct duty. As is well known, interest is paid as a measure of compensation to make good the loss for the delayed payment. In this view of the matter, the impugned order of the Commissioner (Appeals) holding that the assessee is liable to pay interest following the month in which the assessments were finalized, cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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