COMMISSIONER OF CENTRAL EXCISE Vs. GARWARE POLYESTER LTD.

JUDGEMENT

(1.) IN this appeal of the Revenue, the short question to be considered is whether, under Rule 7(4) of the Central Excise Rules, 2002, interest is liable to be paid by the assessee on the differential duty paid by them and, if so, to what extent. According to the respondent, interest is payable under Rule 7(4) read with Section 11AB of the Central Excise Act only for a period from the date of expiry of one month from the date on which the duty amount was determined. In this case, the differential duty was self -determined by the assessee and paid before the assessing authority finalized provisional assessment. According to the assessee, in this scenario, no interest is chargeable. Today there is nobody to argue this case on behalf of the respondent despite notice, nor is there any request for adjournment.

(2.) LEARNED SDR submits that the issue is squarely covered in favour of the Revenue by the Tribunal's Larger Bench decision in the case of Cadbury India Ltd. v. Commissioner of Central Excise, Pune -I, 2008 (232) ELT 224 (Tri -LB). In the cited case, it was held that interest under Rule 7(4) read with Section 11AB was payable even if the differential amount of duty was paid before finalization of provisional assessment. It was also held that such interest was payable from the first day of the month succeeding the month for which assessment was finalized.