2018 (11) TMI 459 – CESTAT CHENNAI – TMI – Demand of Interest – delay in payment of duty – delay for the reason that the agreement as well as the certificates issued by the TNEB for the clearance of poles, agreed upon by both sides, indicates the central excise duty – Held that:- The taxable event in the case of central excise duty is the clearance of goods. Therefore, even though the agreement or TNEB certificate included the central excise duty, the liability to pay the duty arises only at the time of clearance of goods / poles – demand of Interest is unsustainable – appeal allowed – decided in favor of appellant. – Appeal No. E/41095/2018 – Final Order No. 42784/2018 – Dated:- 7-11-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Shri M
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d, the appellant filed appeal before Commissioner (Appeals) who upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri M.N. Bharathi submitted that the taxable event in the case of central excise duty is the clearance of goods. In the present case, the appellant has paid central excise duty whenever the goods have been cleared. The case of the department is that the appellant has to pay central excise duty at the point of agreement as well as when the TNEB has issued certificate for the poles indicating the central excise duty. It is submitted by him that when the goods have been cleared by the appellant, they had discharged the central excise duty and therefore there is no delay in payment of duty. That the dem
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d for the period July 2013 to October 2015. The demand of interest is made by the department alleging that there is delay in payment of duty for the reason that the agreement as well as the certificates issued by the TNEB for the clearance of poles, agreed upon by both sides, indicates the central excise duty. As rightly argued by ld. counsel for the appellant, the taxable event in the case of central excise duty is the clearance of goods. Therefore, even though the agreement or TNEB certificate included the central excise duty, the liability to pay the duty arises only at the time of clearance of goods / poles. For this reason, I find that the demand of interest is unsustainable and requires to be set aside, which I hereby do. The impugned
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