COMMISSIONER OF CENTRAL EXCISE Vs. AKSH OPTIFIBRE LTD

JUDGEMENT

(1.) This Central excise appeal is directed against the order of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (in short "CESTAT") dated October 25, 2007. The brief facts, as emerging on the face of record, are that the respondent assessee is engaged in the manufacture of optical fibre cable/optical fibre falling under sub-heading 8544 10/9001 90 of the First Schedule to the Central Excise Tariff Act, 1985.

(2.) It has been observed by the assessing officer adjudicating authority that during the course of scrutiny of the records for the period of December, 2002 to July, 2003, it was noticed that the assessee had cleared its product optical fibre cable/optical fibre to M/s. Bharat Sanchar Nigam Ltd., (in short "BSNL") (A Government of India Undertaking) on the basis of provisional prices placed by the BSNL on the terms and conditions as laid down as per purchase order and paid the duty accordingly. Subsequently when final rates were approved by the BSNL, the assessee had raised supplementary invoices for differential assessable values and also paid differential duty accordingly.

(3.) However, it transpires that the respondent-assessee did not request the assessing officer for allowing the clearances of goods on provisional basis as required under rule 7 of the Central Excise Rules, 2002. Accordingly, show-cause notice was issued, as to why, as per the provision contained in rule 7 of the Central Excise Rules, interest of Rs. 9,775 on the differential duty for the period July, 2001 to June, 2002 may not be levied rule 7(4) of the Central Excise Rules, 2002.