2/ 2 Since price difference arose between the price on the date of removal and the enhanced price at which the goods stood ultimately sold, the Department issued a show cause numberice proposing to levy interest on the differential duty, paid by the assessee, under Section 11AB of the Central Excise Act, 1944 Act, for short.
During the relevant Assessment Years, assessee supplied auto parts to their customers manufacturers of motor vehicles, such as Tata Motors, Mahindra and Mahindra and Piaggio Vehicles Private Limited who determined the prices of auto parts having regard to the companyt of raw material, manufacturing companyt, profit margin, etc.
In case of Tata Motors, orders were placed through internet under a software system known as SRM.
In this case, Department seeks to recover interest on differential duty, paid by the assessee, under Section 11AB of the Central Excise Act, 1944, which is disputed by the assessee.
Further, according to the assessee herein, there was numberprice variation clause in the purchase orders, therefore, there was numberscope for increase in prices subsequently and that too, retrospectively.
Leave granted.
and placed orders with the assessee.
