M/S. Measurement & Controls India Ltd vs Commissioner Of Central Excise, ...
- CitationAppeal No.137
Ratio decidendi
The rule this decision rests on
Interest on a duty liability under a provisional assessment does not run from the date of the original payment default during the provisional stage, because the liability is not enforceable until the assessment is finalised; the demand becomes enforceable, and interest accrues, only from the date of finalisation of the assessment, and interest is payable thereafter if the enforceable demand is not paid.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
[Arising out of Orders-in-Appeal No.137 to 140/2012 (P) , dated 17.10.2012 passed by the Commissioner of Central Excise (Appeals), Chennai ]
M/s. MEASUREMENT & CONTROLS INDIA LTD. APPELLANT
Versus
COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY RESPONDENT
Appearance:
For the Appellant Shri S. Raghu Adv.
For the Respondent Shri M. Rammohan Rao DC (AR)
CORAM:
Honble Shri D.N. Panda, Judicial Member
Date of hearing/decision 02-03-2015
FINAL ORDER NO. 40199 / 2015
Learned counsel Shri Raghu submits that upon final assessment, demand becomes crystal for recovery on that day. If there is default to discharge that demand, interest liability arises from the date of default. The appellant has discharged the duty liability as well as interest arose upon finalization of the demand.
2. Revenue supports the orders of the authorities below.
3. Heard both sides and perused the records.
4. Dispensing the requirement of pre-deposit, the appeal is allowed on the ground that liability becomes enforceable from the date of demand. Therefore, during provisional assessment when the liability is in fluid stage nothing is crystal till finalization. Only from the date of finalisation of assessment the ultimate demand become enforceable.
5. Learned departmental representative at this stage submits that if there is a default upon finalisation that should be compensated by interest. He is correct partially to the extent that if there is a default in payment of enforceable demand, interest flows thereon. Accordingly, appeal is allowed. Consequential benefit if any shall flow in accordance with law.
(Dictated and pronounced in open court)
(D.N. PANDA) JUDICIAL MEMBER
ksr 06-03-2015
DRAFT Remarks
I II III
Date of dictation 02.03.2015
Draft Order - Date of typing 03.03.2015
Fair Order Typing 06.03.2015
Date of number and date of dispatch 09.03.2015
4 E/S/40310/2013 and E/40373/2013
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