9911796707
TMI Blog2008 (2) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... - The Revenue has filed this appeal against the Order-in-Appeal No. 59/2006-C.E. dated 27-10-2006, passed by the Commissioner of Central Excise (Appeals-II), Bangalore. 2. The Respondent were manufactures of electric transformers. In terms of the "Price Escalation" Clause in the Contract with the buyers, provisional assessment was resorted to. However, when the actual price of the goods cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Tribunal rendered in the cited Final Order, in the interest of judicial discipline, he would follow the same. Thereupon, he set aside the Order-in-Original and allowed the appeal of the Respondents. The Revenue is aggrieved over the impugned order on the following grounds "The said OIA of the Commissioner (Appeals) appears to be not correct and legal in as much as the application of Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the interest liability starts from the first day of the month succeeding the month from which the duty has been determined. He argued that normally the duty liability is at the time of clearance. Even if the provisional assessment is finalized later, the differential duty ought to have been paid at the time of clearance of the goods. That is why the Department is of the view that the intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d demand interest on discharging the interest liability also. The learned Advocate further relied on the following decisions :- (i) H.V. Axler Ltd. v. Commissioner of C. Ex., Ranchi [2007 (215) E.L.T. 70 (Tri.-Kolkata)]. In this case, it has been held that in assessments involving price escalation, no interest would be payable under Section11AB. (ii) Ispat Industries Ltd. v. Commissioner of C. E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isional assessment. If the view taken by the Department is upheld, the assessee will be burdened with interest for no fault of theirs. In any case, the Commissioner has followed the ruling of this Bench. There is nothing on record to show that the above decision has been set aside. No contrary decision has also been cited. In view of the above, there is no merit in the Department's appeal and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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