Bharat Heavy Electricals Ltd vs C.C.E., Bhopal on 15 February, 2011
16. Placing reliance in the decision in the matter of S.K.F. India Ltd. it is submitted that though the decision does not deal with the issue of charging interest on payment of duty on finalisation of assessment, it does cover cases where the duty is paid at any subsequent date by the assessee on account of revision of price. The provisional assessment in the case in hand was resorted to because the appellants were not certain about the price at the time of removal of the goods. In other words, the provisional price was subjected to revision. Resort to Rule 7 protects the assessee from penal action which can be attracted for failure to pay the appropriate duty at the time of removal of the goods. Merely because the appellants took shelter of the provision of law comprised under Rule 7 that cannot exonerate the payment of interest on the delayed payment of duty. The situation in the case in hand is akin to the price revision at a future date and the same is fully covered by the decision of the Apex Court in S.K.F. India Ltd. case. Undisputedly, the differential duty was paid subsequent to the date of payment due at the time of removal of the goods. Finsalisation of the assessment does not alter the procedure of levy and collection of duty consequent to price variation.