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TMI Blog2025 (1) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise Rules, 2002. 2. The brief facts of the case are M/s. ITI, the Appellant is the manufacture of telecommunication equipment including telephone exchange falling under Chapter 85 of Central Excise Act, 1985. The Appellant cleared parts and accessories of telephone exchanges and other items manufactured by them to their customers mainly Department of Telecommunication (DOT) as per the directions given in the purchase order. Since the Appellant was not in a position to determine the actual value of goods cleared to DOT at the time of clearance as there was a clause of price escalation in the contract entered into with DOT, Appellant had requested for provisional assessment, and it was allowed by the Respondent in respect of goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alising provisional assessment for the period 2001-02 under Rule 7(3) of Central Excise (No.2) Rules 2001 and Rule 7 (3) of the Central Excise Rules, 2002, 2) An amount of Rs. 68,07,274/- should not be levied on them under Section 11AB of the Central Excise Act, 1944 being the interest payable on differential duty paid by them on the final value of the goods cleared by them during the period 01.04.2001 to 31.03.2002. 3) The excess amount of duty paid should not be credited to Consumer Welfare Fund in terms of the provisions of Section 11B (2) of the Central Excise Act, 1944". 4. Accordingly, the Adjudication authority considered the issue in detail as per the following chart : - Sl. No. Particulars of Sale Basic Value in Rs. Excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eals) as per the impugned order dismissed the appeal. Aggrieved by the impugned order, appeal is filed before this Tribunal. 6. When the appeal came up for hearing, Ld. Counsel for the Appellant submits that demand of interest for payment of excise duty for price escalation through supplementary bill is not correct in law for the reason that the Appellant were paying differential excise duty then and there before the finalization of provisional assessment without adjusting the excess excise duty paid in the cases where credit notes are issued. The interest liability on the differential duty payable consequent to finalization of provisional assessment would be from the first day of the month succeeding the month in which the assessment is f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stainable. 8. The Ld. Authorised Representative (AR) for the revenue reiterated the finding in the impugned order and submits that the issue is no more res integra and it is well settled that the liability for payment of duty is statutorily fixed being the date of removal of the goods consequently to the manufacture thereof and the same cannot be changed. This view was upheld by the Hon'ble High Court of Allahabad in the matter of M/s. Bharat Heavy Electricals Ltd Vs. CC, Kanpur-2015 (232) E.L.T (417) and in appeal, it was also upheld by the Hon'ble Supreme Court -2022 (382) E.L.T 161 (SC). 9. Heard both sides and perused the records. 10. The issue regarding demand of interest on the goods which were cleared provisionally was considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are the same words as used under Article 265 of the Constitution, which has been interpreted as comprehending the entire process of taxation commencing from the imposition of the tax by enacting a statute to the actual taking away of the money. The words "levied" is a wide and generic expression and is of wide import and takes in all the stages of charge. quantification and recovery of duty though in certain context it may have a restricted meaning." "16. The Supreme Court in Ujagar Prints v. Union of India, 1988 (38) ELT 535 held that the word "levied" means charged as well as assessed. The Supreme Court in Commissioner of Central Excise, Pondichery vs. Acer India Ltd., 2004 (172) ELT 289 further held that Section 4 of the Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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