MANGAL ELECTRICALS INDUSTRIES Vs. CCE

JUDGEMENT

(1.) AFTER hearing both the sides and on perusal of the records, I find that the issue involved in this case is in narrow compass and, therefore, after granting stay, the appeal is taken up for disposal.

(2.) THE instant appeal relates to demand of interest under Section 11AB of Central Excise Act, 1944 on payment of differential duty on the basis of supplementary invoice.

(3.) THE Commissioner (Appeals) observed that in earlier order -in -appeal dated 12.9.2007, he held that no interest is leviable on supplementary invoice. But he has changed his view following the decision of the Tribunal in the case of Inducto Casts v. CC&EC, Vadodara -I reported in 2007 (217) ELT 455 (Tri. Ahmd.) held that interest is payable on payment of differential duty on the basis of supplementary invoice. It is seen that the Hon'ble Bombay High Court in the case of CCE, Aurangabad v. Rucha Engineering Pvt. Ltd. reported in 2008 (223) ELT 161 (Bom.) upheld the decision of the Tribunal on identical issue held in favour of the assessee. The relevant portion of the said decision is reproduced below: