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M/s. Steel Authority of India Ltd. (Unit Bhilai Steel Plant) v. Commissioner of Central Excise, Raipur

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 2150 of 2012)Decided 7 Dec 2015
Civil Appeal No. 2150 of 2012
Justice A.K. Sikri · Justice Rohinton Fali Nariman

Background

This is a referral order, not a final judgment. A public-sector steel maker paid about Rs. 142.78 crore of differential excise duty in August 2006, after the Railways revised prices upward for goods cleared between 2005 and 2006. The department demanded interest under Section 11AB on the duty paid late.

Decision Breakdown

This is a referral order, not a final judgment. The Court concluded that the earlier decisions in SKF India and International Auto, which had held interest payable, required a re-look. It directed the Registry to place the matter before the Chief Justice of India for a larger Bench. It did not decide whether interest is payable.

Lesson Learnt

There is no final ruling yet on whether interest is payable on excise duty paid late after a price revision. The Court's remarks record its doubts and are not a decision.

Official source (sci.gov.in)View Judgment (PDF)

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