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TMI Blog2017 (10) TMI 746X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of various types of two wheelers, parts of internal combustion engines and parts and accessories of two wheelers falling under Chapter Heading 8711 and 8407 of the Central Excise Tariff Act, 1985. During the disputed period, the Appellant had two manufacturing units viz. at Hosur unit and Mysore unit ( Appellant herein ), which were separately registered under the Central Excise Act, 1944. The present appeal pertains to the clearances made by the Mysore unit. 2.2. During the disputed period, the Appellant was engaged in the activity of machining castings like cam shaft, cylinder complete and crank cast left and right, which were stock transferred to the Hosur unit and further used in manufacture of internal combustion engines and two wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant paid the differential duty amounting to Rs. 2,58,312 vide letter dated 30.01.2001 and Rs. 1,19,521 vide letter dated 13.02.2001. The said adjustment was also accepted by the department. 2.4. After lapse of 9 months, in terms of internal audit report dated 07.11.2001, it was observed that the duties excess paid cannot be set off against duty short paid in respect of others and that wherever duty is found to have been short paid, the same may be paid in full and for the excess refund claim may be preferred under Section 11B. Accordingly, the Appellant was directed to pay differential duty of Rs. 38,60,948/- plus interest of Rs. 6,84,449/- (calculated from due date of payment for each fortnight till 15.09.2001) in respect of clearan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(d) does not cover interest on differential duty which may arise at a later date, which is governed by the provisions of Section 11AA and Section 11AB of the Central Excise Act, 1944. For this submissions, he relied upon the decision of the Madras High Court in the case of Chamundi Steel Castings (India) Ltd. Vs. CESTAT [2009(247) ELT 116 (Mad.)] wherein it has been held that the said rule can only be invoked when there was failure in fortnightly payment of duty and not when differential duty has been paid voluntarily by the assessee subsequently. He also submitted that the interest under Section 11AA(1) is applicable only in cases where duty has been determined by process of adjudication under Section 11A(2). In such cases, interest is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts Pvt. Ltd. Vs. CCE, Bangalore [2012(276) ELT 332 (Kar.)] ii. Tilrode Chem Pvt. Ltd. Vs. CCE, Bangalore [2014(314) ELT 9 (Kar.)] iii. Essar Steel India Ltd. Vs. CCE [2017(345) ELT 139 (Tri. Del.)] iv. Jonas Woodhead & Son (I) Ltd. Vs. CCE, Chennai [2015(329) ELT 577 (Tri. Che.)] v. CCE, Bangalore Vs. BHEL [2010(257) ELT 369 (Kar.)] vi. Chamundi Steel Castings (India) Ltd. Vs. CESTAT [2009(247) ELT 117 (Mad.)] 5. On the other hand, the learned AR reiterated the findings of the impugned order and submitted that it is a fact that the appellant has failed to determined and discharge the duty liability on the goods at the time of clearance. Therefore they are liable to pay interest in terms of Rule 173G(1)(d). 6. After considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tilrode Chem Pvt. Ltd. Vs. CCE, Bangalore [2014(314) ELT 9 (Kar.)] iii. Essar Steel India Ltd. Vs. CCE [2017(345) ELT 139 (Tri. Del.)] iv. Jonas Woodhead & Son (I) Ltd. Vs. CCE, Chennai [2015(329) ELT 577 (Tri. Che.)] 7. In view of our discussion above and by relying upon the ratios of the decisions cited supra, we partly allow the appeal of the appellant by holding that the appellants are liable to pay interest on the differential duty liability amounting to Rs. 3,77,833/-. For quantification of the interest on this amount, adjudicating authority will compute the interest liability of the appellant on this differential duty liability and thereafter adjusting the same from the interest amount of Rs. 8,13,069/- which was paid under prot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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