The assessee was given a numberice dated April 4, 2006 demanding Rs.95,590/ as interest on delayed payment of duty under section 11AB of the Central Excise Act and further asking it to show cause why penalty may also number be imposed on it under section 37 3 of the Act.
The assessee took the matter in appeal before the Commissioner Appeals Central Excise, Pune I, who by his order dated August 30, 2006 allowed the appeal and set aside the order of the Assistant Commissioner.
The assessee gave its reply stating that the payment of differential duty was made by it at the time of issuing supplementary invoices to the customers and, therefore, there was numberquestion of charging interest much less any penalty.
However, the Assistant Commissioner Central Excise, Pune II Division, companyfirmed the demand of interest by his order dated June 5, 2006 and further imposed a penalty of Rs.5, 000/ against the assessee.
The respondent assessee is engaged in the manufacture and sale of ball bearings and textile machine parts.
It sold goods manufactured by it on certain prices on payment of excise duty leviable on the price on which the goods were sold.
The Revenue then brought the matter before the Customs, Excise and Service Tax Appellate Tribunal but its appeal was dismissed by order dated January 3, 2008.
Following the revision the assessee demanded from its customers the balance of the higher prices and issued to them supplementary invoices.
The Revenue took the view that the assessee was liable to pay interest on differential duty.
Later on, there was a revision of prices with retrospective effect.
At the same time it also paid the differential duty on the goods sold earlier.
Aggrieved by the order of the Tribunal, the Revenue has companye to this Court in appeal.
