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TMI Blog2024 (9) TMI 1246X X X X Extracts X X X X X X X X Extracts X X X X ..... since the method for calculation of interest i.e. whether interest be calculated after expiry of one month from the due date of payment of duty or the date on finalisation of the provisional assessment of the duty liability be taken into consideration, was in dispute and pending before the honourable High Court of Karnataka in COMMISSIONER OF C. EX., MYSORE-I VERSUS JK. INDUSTRIES LIMITED [ 2011 (3) TMI 373 - KARNATAKA HIGH COURT] , the quantum of interest on the excess duty paid by the appellant and also interest due on the duty short paid could not be calculated and kept pending. On finalisation of the pending issue by the aforesaid judgement, the applicant approached the Department informing the amount of interest on the excess duty pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant are engaged in the manufacture of tyres, tubes and flaps falling under Chapter 40 of the Central Excise Tariff Act, 1985. Consequent to the finalisation of the provisional assessment for the period from 2002-03 to 2009-10, the interest payable on the excess amount of duty, had not been calculated and refunded to the appellant since the dispute relating to computation of relevant date from which the interest is payable has not been finalised and pending before the High Court. Consequent to the decision of the Honourable High Court, they have filed an application seeking interest of Rs.1,15,84,533/- on the excess amount of duty paid. The adjudicating authority rejected the said claim. Aggrieved by the said order, appellant filed appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry India Ltd. Vs. CC CE, Pune-I [2008(232) ELT 224 (Tri. LB)], held that interest would be attracted from the first day of the month, from which the duty is determined and payable and not from the date when assessment is finalised. 3.1. Even though the said judgement of the larger bench was placed before the adjudicating authority, interest was not calculated and paid to them observing that the issue is pending before the Hon ble High Court of Karnataka. The Hon ble High Court vide its order dated 01.03.2011 in CCE, Mysore-I Vs. JK Industries Limited [2011(268) ELT 168 (Kar.)] held that interest gets attracted from the first day of the month succeeding the month to which the duty is determined and not from the date of finalisation of assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,23,115/- due to the appellant on the excess duty paid, the appellant had paid the said amount of interest due to the Department i.e. Rs.63,71,217/- on 22.11.2012 vide challan No.403 dated 22.11.2012. He has submitted that therefore, interest amount of Rs.1,15,23,115/- on the excess duty paid from 2002-03 to 2009-10 is due to the appellant and ought to have been refunded. 4. Learned AR for the Revenue reiterated the findings of the learned Commissioner(Appeals) and has not disputed the facts. 5. The short question involved in the present appeal for consideration is, whether the appellant is entitled to interest of Rs.1,15,23,115/- on finalisation of provisional assessment for the period 2002-03 to 2009-10 on the amount of excess duty paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order is, the rate of duty payable is determined. The adjustment is to be made on the date it was actually liable to be paid. Therefore, if the duty paid under a provisional assessment is less than what is determined in the final assessment, it is a case of short payment of duty. Therefore interest is payable on that short payment of duty from the due date, the relevant date being the day on which the duty is to be adjusted. Therefore, the date of provisional assessment and the date of final assessment have no relevance in deciding the payment of interest. The date on which duty is payable is provided under the Rules. If the duty determined to be paid under the final assessment is not paid on the due date, if it is short paid, not onl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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