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TMI Blog2008 (7) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... atter manufacturing thin-walled bearings. The product of the Chennai unit is input for the Coimbatore unit. During the period of dispute, the Chennai unit cleared their product on payment of duty in provisional assessment, to the sister unit at Coimbatore. As there was no sale involved in the transaction, the valuation of the goods was done under Rule 8 as applicable to excisable goods manufactured and captively consumed. As certain elements to be included in the costing of materials for the purpose of determining the assessable value under Rule 8 were not ascertainable on the date of clearance of the finished goods, provisional assessment became imperative and the same was permitted by the jurisdictional Asst. Commissioner of Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was that the clearances of excisable goods were made under contracts containing a price variation clause, which was invoked by the assessee. As in the case of M/s. BBL, this assessee also suo motu finalized assessments and paid differential duty forthwith without waiting for finalization of assessments by the assessing authority. On these facts, the aforesaid issue arose between them and the department. The decision of the original authority and that of the first appellate authority are against them. Hence the two appeals of M/s. EFL. 3. The ld. counsel for M/s. BBL has raised two-fold arguments. On the one hand, he submits that the assessee is not liable to pay interest at all inasmuch as the payment of differential duty by them was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. At this juncture, it is submitted by the ld. counsel that the department's request for referring the question to Larger Bench was turned down by a learned Single Member of the Tribunal in the case of Tata Motors Ltd. v. CCE, Pune, 2008 (226) E.L.T. 563 (Tri.-Mumbai.) and, therefore, the view taken by the Tribunal in the case of Karnataka Vidyuth Karkhane Ltd. (supra) requires to be followed. 5. The ld. counsel has also raised the plea of revenue-neutrality. It is submitted that credit of any duty paid by the Chennai unit is available to their sister unit at Coimbatore and, therefore, the Revenue has no gain and no loss under Rule 7(4). This submission has also been vehemently contested. It further appears from the submissions that the q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect, we are unable to agree with this view which does not flow from the text of the provision. The period prescribed for payment of interest under Rule 7(4) is from the first date of the month succeeding the month for which the amount is deter mined, till the date of payment of differential duty. 7. In the present cases, the assessees themselves calculated the final amount of duty and paid differential amount forthwith prior to the date on which the provisional assessment was finalized by the proper officer of Central Excise. The argument of the assessee is that such payment was not "consequent to order for final assessment" and, therefore, the provision for payment of interest would not be applicable. Rule 7(4) is a provision for com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f commencement of the period for payment of interest. This date is precisely the first date of the month succeeding the month for which the duty was paid. As rightly pointed out by ld. SDR, Rule 7(4) is clear enough. It will not be unreasonable to say that the Board's supplementary instruction throws light on the legislative intent underlying Rule 7(4). The mandate of the provision is that, whether the differential amount of duty is paid prior to the date of finalization of provisional assessment under sub-rule (3) or subsequent to that date, interest will have to be paid on that amount of duty for the period specifically provided for, which is from the first day of the month succeeding the month for which the duty is determined, till the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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