Areva T and D India Ltd. Vs. Commissioner of Central Excise, Ltu, Chennai - Court Judgment

SooperKanoon Citationsooperkanoon.com/1150379
CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Chennai
Decided OnJan-06-2014
Case NumberApplication Nos. E/S/20-24 of 2011 & Appeal Nos. E/39-43 of 2011 [Arising Out of Order-in-Original No.LTUC/309-313 of 2010 (C) dt. 14.10.2010 passed by Commissioner of Central Excise, LTU, Chennai]
JudgeTHE HONOURABLE MR. P.K. DAS, JUDICIAL MEMBER & THE HONOURABLE MR. MATHEW JOHN, TECHNICAL MEMBER
AppellantAreva T and D India Ltd.
RespondentCommissioner of Central Excise, Ltu, Chennai
Excerpt:
p.k. das, j. 1. all these applications are arising out of a common order and therefore all are taken up together for disposal. after hearing stay applications at length, we find that the issue involved in this case is in a narrow compass, and therefore after disposing the stay applications, we take up the appeals for hearing. 2. after hearing both sides, and on perusal of the records, we find that the appellant raised supplementary invoices to their customer with retrospective increase of price of finished goods and paid duty at the time of issue of supplementary invoices on price revision. the issue involved in this case as to whether the appellant is required to pay interest on issue of supplementary invoices to the customers on price variation in respect of the goods sold earlier and penalty to be imposed.  the adjudicating authority confirmed the demand of interest along with penalty. 3. ld. ar on behalf of revenue submits that in the appellant's own case on the same issue, this tribunal by final order dt. 9.12.2011 reported in 2012-tiol-300-cestat-mad dismissed their appeal. 4. in this context, the learned advocate submits that the hon'ble madras high court vide order dt. 10.4.2012 in mp no.1 to 1 of 2012 in cma no. 475 to 478/2012 granted absolute stay of the tribunal's order. 5. ld. ar also placed the following high court decisions to support revenue's case: 1). cce bangalore vs presscom products 2011 (268) elt 344 (kar.) 2). gammon india ltd. vs cce 2013 (298) elt 171 (bom.) 3). cce b'lore vs kenna metal widia (india) ltd. 2012 (280) elt 381 (kar.) 6. we find that the hon'ble supreme court in the case of cce pune vs skf india ltd. 2009 (239) elt 385 (sc) held that payment of differential duty at a later date is clearly a case of short payment of duty though completely unintended and without element of deceit but interest is payable for the delayed payment. the hon'ble supreme court upheld the demand of interest and set aside the penalty.  it is seen that the said order of the supreme court was followed in later judgment in the case of cce vs international auto ltd. - 2010 (250) elt 3 (sc).  in view of that, we uphold the demand of interest and set aside the penalty. all the appeals are partly allowed in the above terms. stay applications are disposed of.
Judgment:

P.K. Das, J.

1. All these applications are arising out of a common order and therefore all are taken up together for disposal. After hearing stay applications at length, we find that the issue involved in this case is in a narrow compass, and therefore after disposing the stay applications, we take up the appeals for hearing.

2. After hearing both sides, and on perusal of the records, we find that the appellant raised supplementary invoices to their customer with retrospective increase of price of finished goods and paid duty at the time of issue of supplementary invoices on price revision. The issue involved in this case as to whether the appellant is required to pay interest on issue of supplementary invoices to the customers on price variation in respect of the goods sold earlier and penalty to be imposed.  The adjudicating authority confirmed the demand of interest along with penalty.

3. Ld. AR on behalf of Revenue submits that in the appellant's own case on the same issue, this Tribunal by final order dt. 9.12.2011 reported in 2012-TIOL-300-CESTAT-MAD dismissed their appeal.

4. In this context, the learned advocate submits that the Hon'ble Madras High Court vide order dt. 10.4.2012 in MP No.1 to 1 of 2012 in CMA No. 475 to 478/2012 granted absolute stay of the Tribunal's order.

5. Ld. AR also placed the following High Court decisions to support Revenue's case:

1). CCE Bangalore Vs Presscom Products 2011 (268) ELT 344 (Kar.)

2). Gammon India Ltd. Vs CCE 2013 (298) ELT 171 (Bom.)

3). CCE B'lore Vs Kenna Metal Widia (India) Ltd. 2012 (280) ELT 381 (Kar.)

6. We find that the Hon'ble Supreme Court in the case of CCE Pune Vs SKF India Ltd. 2009 (239) ELT 385 (SC) held that payment of differential duty at a later date is clearly a case of short payment of duty though completely unintended and without element of deceit but interest is payable for the delayed payment. The Hon'ble Supreme Court upheld the demand of interest and set aside the penalty.  It is seen that the said order of the Supreme Court was followed in later judgment in the case of CCE Vs International Auto Ltd. - 2010 (250) ELT 3 (SC).  In view of that, we uphold the demand of interest and set aside the penalty. All the appeals are partly allowed in the above terms. Stay applications are disposed of.