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2010 (8) TMI 488 - CESTAT, AHMEDABADInterest - The demand was confirmed against the respondents by denying the benefit of modvat credit - The said credit was deposited by the respondents from their modvat credit - However, subsequently their appeal was allowed by Commissioner (Appeals) with consequential relief. Accordingly, the assessee filed refund claim - The said refund was granted by Assistant Commissioner by way of re-credit in their cenvat account - Dispute in the present appeal of the Revenue is only relates to interest part. Held that: the payment of duty was originally made by the assessee by debiting in cenvat credit account - The assessee has not been able to show as to whether on account of such debit entry, hey were debarred from utilizing the said credit and were compelled to pay duty out of PLA - Only if the assess was put to disadvantageous position on account of debit of the modvat credit, they can be said to prejudice by the departmental action - If the said amount of debit was required to be remained only as a paper entry in the credit account, the assessee’s claim of interest cannot be upheld - Neither side is able to place on record the various dates on which the debit entry was made, the quantum of credit available in between period, the quantum of payment of duty out of PLA during the said period - Hence, set-aside the impugned order and remand the matter to original adjudicating authority for deciding the assessee’s claim of interest .
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