ALSTOM T&D INDIA LTD. Vs. CESTAT

JUDGEMENT

(1.) These appeals are filed challenging the Final Order Nos.40086-40090 of 2014, dated 6.1.2014 passed by the Customs, Excise and Service Tax Appellate Tribunal (for brevity, the Tribunal).

(2.) The brief facts of the case are as under: The assessee is a manufacturer of electrical equipment falling under Chapter Heading 85 of the Schedule to Central Excise Tariff Act, 1985. The assessee was manufacturing and supplying goods to various customers. According to the assessee, the clearance to the customer was based on transaction value and is supported by purchase order from the customer. Whenever there was escalation in direct input or direct cost, such impacts were taken up with the customers. Thereafter, the customer issues an order of amendment giving effect to the price increase retrospectively. The assessee would thereafter raise supplementary invoice and that would pay differential duty on such price revision. This resulted in time gap between the date of actual clearance and the date of supplementary invoice on which duty was paid. According to the assessee, the differential duty was paid soon after the order of amendment was received from the customer.

(3.) The main plank of the argument of Mr.Joseph Prabakar, learned counsel for the appellant, is that payment of interest under Section 11AB of the Act would apply only when there is a demand by the department on account of short payment and inasmuch as the assessee has paid duty when the liability occurred, no interest would become payable for receipt of additional consideration later.