Excise & Customs : Under rule 7(4) of Central Excise Rules, 2002, interest arises only from first day of month succeeding month for which such amount is determined till date of payment thereof; thus, interest liability arises only upon determination of value or duty by adjudicating authority
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[2014] 50 taxmann.com 120 (Rajasthan)
HIGH COURT OF RAJASTHAN
Commissioner of Central Excise
v.
Aksh Optifibre Ltd.*
AJAY RASTOGI AND J.K. RANKA, JJ.
D.B. CENTRAL EXCISE APPEAL NO. 21 OF 2008
DECEMBER 4, 2013
Rule 7 , read with rule 27 of the Central Excise Rules, 2002 and section 11AA of the Central Excise Act, 1944 - Interest - On Delayed Payment of duty/tax - Period from December, 2002 to July, 2003 - Assessee paid duty on provisional rates fixed with customers and later, paid differential duty on differential amount arising on finalization of its prices - Department contended that assessee should have opted for provisional assessment and asked for payment of interest under rule 7(4) of Central Excise Rules, 2002 - HELD : Under rule 7(4), interest arises only from first day of month succeeding month for which such amount is determined till date of payment thereof - Thus, interest liability arises only upon determination of value or duty by adjudicating authority and only after determination, this liability arises - Hence, assessee could not be made to pay interest and penalty merely because it had not applied for provisional assessment - In view of concurrent findings of fact and amount being small, no substantial question of law arose [Paras 11 & 12] [In favour of assessee]
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[2014] 50 taxmann.com 120 (Rajasthan)
HIGH COURT OF RAJASTHAN
Commissioner of Central Excise
v.
Aksh Optifibre Ltd.*
AJAY RASTOGI AND J.K. RANKA, JJ.
D.B. CENTRAL EXCISE APPEAL NO. 21 OF 2008
DECEMBER 4, 2013
Rule 7 , read with rule 27 of the Central Excise Rules, 2002 and section 11AA of the Central Excise Act, 1944 - Interest - On Delayed Payment of duty/tax - Period from December, 2002 to July, 2003 - Assessee paid duty on provisional rates fixed with customers and later, paid differential duty on differential amount arising on finalization of its prices - Department contended that assessee should have opted for provisional assessment and asked for payment of interest under rule 7(4) of Central Excise Rules, 2002 - HELD : Under rule 7(4), interest arises only from first day of month succeeding month for which such amount is determined till date of payment thereof - Thus, interest liability arises only upon determination of value or duty by adjudicating authority and only after determination, this liability arises - Hence, assessee could not be made to pay interest and penalty merely because it had not applied for provisional assessment - In view of concurrent findings of fact and amount being small, no substantial question of law arose [Paras 11 & 12] [In favour of assessee]
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