Case Law Details
M/s. Steel Authority of India Ltd. Vs Commissioner of Central Excise (Supreme Court)
Larger Bench of Supreme Court has held that interest for delayed payment of Central Excise duty is liable to be paid on the differential excise duty payable due to retrospective price escala Earlier, doubting the correctness of the Supreme Court decision in the cases of CCE v. SKF India Ltd. [2009 (13) SCC 461] and International Auto [2010 (2) SCC 672], the matter was referred to the Larger Bench in Steel Authority of India case [2015 (16) SCC 107]. The Referring Bench was of the view that excise duty paid on the date of clearance of goods was not treatable as ‘short-paid’ as it was not possible to pay duty based on price escalation which took place later. Rule 7 of the Central Excise Rules relating to provisional assessment, according to which interest is to be paid, was relied on. The Apex Court observed that assessee had not opted for provisional assessment, and that the law will have to be interpreted in a manner that it is fair and equal to similarly situated group of assessees.
FULL TEXT OF THE SUPREME COURT JUDGEMENT
1. A Bench of two judges doubted the correctness of the judgement rendered by a Bench of two learned judges of this Court in CCE v. SKF India Ltd. 2009 (13) SCC 461 (hereinafter referred to as the “SKF Case”) as also the another judgement rendered by the same Bench in CCE v. International Auto Ltd. 2010 (2) SCC 672 and on the said basis to resolve the controversy the matter stood posted before us.
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