Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1944 - s. 11 AB - Interest on delayed C payment of duty- Supplementary invoices raised by seller due to price increase by virtue of price variation clause in the sale contract- Differential duty paid by seller on value of such supplementary invoices- Payment of interest u/s. 11 AB on the said differential duty- Held: As on the date when the D goods were cleared Central Excise Act there was no certainty that there would be price escalation - It is impossible to expect the assessee to pay the exci |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Central Excise Act, 1944 - s. 11 AB - Interest on delayedpayment of duty- Supplementary invoices raised by sellerdue to price increase by virtue of price variation clause inthe sale contract- Differential duty paid by seller on value ofsuch supplementary invoices- Payment of interest u/s. 11 ABon the said differential duty- Held: As on the date when the goods were cleared, there was no certainty that there wouldbe price escalation - It is impossible to expect the assesseeto pay the excise duty, at the time of clearance of the goods,on the basis of price escalation that took place at a later datein future - Thus, as on the date of clearance when excise duty was paid, it could not be treated as 'short paid' on thesaid date - As a consequence when the principal amount,namely, the excise duty itself was not payable· (on thedifferential) on the date of clearance of the goods, there cannotbe any question of law to pay interest - However, Supreme Court in earlier decisions-SKF and International Auto caseheld that interest would be payable on the duty paid onsupplementary invoices - The said Bench did not considerthe effect of the expression 'ought to have been paid' occurringin s. 11 AB - Thus, the decision in SKF and International Autocase needs re-consideration - Matter referred to the largerBench. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2015 INSC 891 |
Petitioner | M/s. Steel Authority Of Indialtd. |
Respondent | Commissioner Of Central Excise, Raipur |
SCR | [2015] 10 S.C.R. 938 |
Judgement Date | 2015-12-07 |
Case Number | 2150 |
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