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TMI Blog2017 (11) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is directed, whereas under sub Rule (4) of Rule 7of Central Excise Rules,2002 the interest would be attracted only on determination of duty i.e. the when the duty paid initially by way of provisional assessment, determined through final assessment - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... ch such amount is determined, till the date of payment thereof. 7. The said Provision has been interpreted by the Hon'ble Bombay High Court in CEAT Ltd.'s Case (supra). "33. We find from a reading of this judgment that the conclusion in the Larger Bench decision of the Tribunal cannot be applied to cases which are expressly noted in M/s. Ispat Industries Ltd. and Tata Motors Ltd. Rule 7 and its sub-rules if read together would denote as to how the Revenue secures itself against any provisional assessment. If on a provisional assessment, certain amount of duty is paid, but it is not accurate and correct, then, the final assessment is contemplated on a finalization of the assessment. Upon finalizing, it is possible that the Revenue wil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule would have specifically said so. In the absence of any such stipulation in the Rules the dictum in the decision of the Hon'ble Supreme Court in J.K. Industries Ltd. would apply. If that principle can be applied, then, there was no liability to pay interest. If the liability to pay interest between the time or the period of provisional assessment and payment of differential duty until the final assessment has to be read in the Rule, that is not possible. The interest in this case is not payable merely on equitable considerations. Such being the position, we do not find that the Tribunal was justified in dismissing the Assessee's Appeal. The Tribunal was also not justified in placing reliance upon its Larger Bench decision. The Larger Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wever, Rule (6) cannot be construed in that manner. Hence, the words such amount is determined appearing in Rule 7(4) and such refund is determined in Rule 7(5) are crucial. The determination is thus a relevant factor." 8. The understanding of the said Rule 7(4) of Central Excise Rules,2002 would be more clearer, when a comparison is made with Section 18(3) of the Customs Act, 1962 which reads as under: "18(3) The importer or exporter shall be liable to pay interest, on any amount payable to the Central Government, consequent to the final assessment order or re-assessment order under sub-section (2), at the rate fixed by the Central Government under section 28AB from the first day of the month in which the duty is provisionally assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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