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TMI Blog2024 (9) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... on for that matter cannot be read under the aforesaid scheme of operation to suggest any intention to evade payment of duty, more so since it has been a regular practice of the assessee s working. For a SCN invoking the larger period of time in terms of the provisions of Section 11A(1) ingredients thereto like fraud, collusion, willful misstatement, suppression of fact etc. are required to be evidently established. However, it is found that no such ingredient actually exists in the matter and merely holding non-availment of provisional assessment procedure as a valid ground to invoke longer limitation to understating belies reasonability and logic. For a show cause notice invoking normal period of limitation, it is required to be served on the noticee within one year of the relevant date and the period of one year would be required to be counted from the date of the return for the month concerned with short payment of duty. In the present case the notice is issued on 19.09.2013, which is well beyond normal period of limitation - the extended period of limitation is not invokable in the facts and circumstances of the case. The demand for payment of interest being beyond normal perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur and other costs that are not determinable at the time of initial clearance of goods under cover of Central Excise Invoices. Central Excise duty was thus paid on the basis of the assessable value as shown in the invoice for the purpose at the time of initial clearance of the goods. Subsequently, the price escalation is calculated based on the basis of All India Industrial Price Indices determined by the Reserve Bank of India and communicated by All India Electrical Manufacturers Association, Ministry of Labour and Employment, Government of India. At times, it also happens that instead of price escalation, there is a reduction of price. The appellant submits that it is not possible at the time of original clearance to foresee any price escalation at the time of clearance of goods and therefore, supplementary invoices for differential amount are raised consequent to determination of the price escalation and differential duty on the said differential assessable value paid by way of the said supplementary invoices. A show cause notice dated 19.09.2013 was issued to the appellant in respect of the goods cleared during the period 2009-10, 2011-12 demanding central excise duty on such p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w Cause Notice has been issued invoking the extended of period of limitation. For a Show Cause Notice invoking the larger period of time in terms of the provisions of Section 11A(1) ingredients thereto like fraud, collusion, willful misstatement, suppression of fact etc. are required to be evidently established. However, we find that no such ingredient actually exists in the matter and merely holding non-availment of provisional assessment procedure as a valid ground to invoke longer limitation to our understating belies reasonability and logic. For a show cause notice invoking normal period of limitation, it is required to be served on the noticee within one year of the relevant date and the period of one year would be required to be counted from the date of the return for the month concerned with short payment of duty. In the present case the notice is issued on 19.09.2013, which is well beyond normal period of limitation. Also none of the ingredients as contained in proviso to Section 11 A(1) being validly made out in the present case, the larger period of limitation, cannot be invoked. Moreover, the fact that the payment of duty, on the strength of supplementary invoice was pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in Gujarat Narmada Fertilizers Company Limited (supra). These judgments have relied upon the decision of the Supreme Court approving the view of the Tribunal in TVS Whirlpool Limited (supra) wherein parimateria provisions of the Customs Act were considered. This being a distinguishing feature, we feel that the appellant is entitled to succeed in the present appeals. The question of law is accordingly answered in affirmative, i.e., in favour of the appellant and against the respondent-Revenue. 11. We thus hold that the extended period of limitation is not invokable for the facts and circumstances of the case as the appellant has paid the duty on the supplementary invoices for the material period prior to issuance of Show Cause Notice and the same appropriated vide the impugned order. In that circumstances, the extended period of limitation for demand of interest, is not invokable. Consequently, the demand of interest on supplementary invoices is barred by limitation. 12. The Learned AR for the Department however, places reliance on the Apex Court s Orders in the case of Commissioner of Central Excise, Pune, Vs. SKF India Ltd.-2009 (239) E.L.T. 385 (S.C). We would add here that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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