Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 340 - CESTAT NEW DELHIDuty demand u/s 11D - Interest u/s 11AB - Reversal of CENVAT Credit - appellant were using common Cenvat credit availed inputs for manufacture of dutiable final product and exempted final products and in respect of clearance of exempted final products, in accordance with the provisions of Rule 57CC of Central Excise Rules, were paying an amount equal to the 8% of the sale value - appellant were mentioning this amount being paid to the Government under Rule 57CC of the Central Excise Rules, 1944 in their invoice as modvat reversal and were recovering this amount from the customers - Department seeks to recover the amount recovered from customers - Held that:- Initially there was no provision for charging of interest on the amount determined as payable under Section 11D (3). Such a provision was made by inserting Section 11DD w.e.f. 14/5/03. The amount payable under Section 11D is not the same as the duty which has not been levied or paid or has been short paid or which has been erroneously refunded and whose recovery is recovered by Section 11A. The provisions of Section 11AB are applicable only to the duty which has not been levied or has been short levied or short paid or has been erroneously refunded and has been held as recoverable from a person in terms of Sub-Section (2) of Section 11A. We are of the view Section 11AB is not applicable to the amount recoverable under Section 11D (3) readwith Section 11D (1) and 11D (2). The provisions of recovery of interest on the amount determined as payable under Section 11D (3) was made only w.e.f. 14/5/03 by inserting Section 11DD and in absence of any specific provision regarding its retrospective application, the same cannot be applied retrospectively. Therefore, no interest under Section 11AB was chargeable on the demand confirmed under Section 11D (3). - impugned order upholding the recovery of interest under Section 11AB on the amount demanded under Section 11D (3) by adjustment against refund claim payable to the appellant is not sustainable. The same is set aside. - Decided in favour of assessee.
|