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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 ..... is compensatory in nature and is imposed on an assessed amount who has withheld any tax as and when it was due and payable. Levy of interest is on actual amount of tax withheld and the extent of the delay in paying the tax on the due date'. Conclusion - Interest on differential duty is a statutory liability that arises from the date of removal of goods, irrespective of when the differential duty is paid. The interest serves as compensation for the delay in payment of the duty due. Appeal dismissed. - Hon'ble Mr. P. A. Augustian , Member ( Judicial ) And Hon'ble Mr. Pullela Nageswara Rao , Member ( Technical ) Mr. B. V. Kumar , Advocate for the Appellant Mr. H. Jayathirtha , Authorised Representative ( AR ) for the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Differential Duty Payable / Paid 4,42,48,607/- 6 Total Duty Paid (2+5) 12,62,08,673/- 7 Excise Duty Payable 12,55,75,552/- 8 Excise Duty Paid in Excess by the Appellant 6,33,121/- 3. Thereafter on verification of data submitted by the Appellant, it is found that the Appellant had issued 35 credit notes to concerned BSNL amounting to Rs.4,17,147/- on account of excess sales tax claimed, wrong classification of battery, excess quantity billed, wrong claim, freight charges not taken, etc. Further it is observed that due to upward revision of prices, the Appellant is liable to pay an interest of Rs. 68,07,274/- as per Rule 7(4) of Central Excise Act, 2001 and Rule 7(4) of Central Excise Rules, 2002. Accordingly, a Show cause notice was issued d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f software supplied 57,29,32,555 Nil TOTAL 1,94,13,10,675 21,89,40,500 5. Since the Appellant had paid only the differential duty in each case as soon the prices were finalized as per the terms and conditions of the contract, the Adjudication authority held that Appellant is liable to pay an interest of Rs. 68,07,274/- under Section 11AB of the Central Excise Act, 1944, being the interest payable on the differential duty paid by the Appellant on the goods cleared during the period from 01.04.2001 to 31.03.2002. As regarding the claim of refund amounting to Rs. 6,33,121/-, an amount of Rs. 4,17,147/- is being denied, since it was not subject matter of assessment, and the balance amount of excess paid duty is appropriated towards interest amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) ELT 148 (Tri. Kolkatta) vi. M/s Tata Motors Ltd Vs. Commissioner of Central Excise, Pune - 1 (Tri. Mum) - 2011 (269) ELT 415 (Tri. Mumbai). vii. CEAT Ltd. Vs. CCE, Nashik 2015 (317) ELT 192 Bom. 7. The Ld. Counsel further submits that the Appellant company has been declared as a sick industrial unit and was referred to BIFR. In the proceedings pending before BIFR, Hon ble Bench directed the Government department not to take any coercive steps against the Appellate company. The Ld. Counsel further submits that this Tribunal in the matter of M/s Andhra Cements Ltd. Vs. Commissioner of C. Ex. S.T.,-2009 (243) E.L.T 41 (Tri. Bang.) vide Final order No. 140-141/2009 dated 19.02.2009 held that interest on penalty is not imposable against a comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 62. 13. In the light of the submissions made by the learned counsel for the parties, we find that Article 265 of the Constitution of India provides that no tax shall be levied or collected except by an authority of law. Section 3(1) of the Act provides that there shall be levied and collected in such manner as may be prescribed a duty of excise, etc. 14. There is no doubt that interest is compensatory in nature and is imposed on an assessed amount who has withheld any tax as and when it was due and payable. Levy of interest is on actual amount of tax withheld and the extent of the delay in paying the tax on the due date as held by the Supreme Court in Pratibha Processors vs. Union of India, 19 (B8) ELT 12. 15. We find that Section 3(1) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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