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TMI Blog2008 (2) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 was decided, the Respondents on their own discharged the duty liability even before the finalization of the provisional assessment. Later, the Revenue finalized the provisional assessment and confirmed the differential duty already paid by the Respondents. Apart from the confirmation of duty, interest was demanded in terms of the Rule: 7(4) of the Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tually paid." 3. The learned DR stated that on a careful reading of the relevant Rule namely, 7(4) of the Central Excise Rules, it is clear 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 interest liability starts from the first day of the month succeeding from which the duty is determined. 4. The learned Advocate appeared on behalf of the Respondents referred to the Cross Objections. He stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered in the case of MSEB Pole Factory v. CCE (A), Aurangabad [2005 (187) E.L.T. 209 (Tri.-Mumbai)] wherein Rule 7(4) has been interpreted to the effect that the interest would start only after finalization of the provisional assessment. In many cases, the Department takes considerable time for finalization of provisional 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 same is rejected. (Pronounce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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