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2015 (9) TMI 566 - AT - Central ExciseDemand of interest u/s 11AB - interest on reversal amount of cenvat credit - whether interest is payable by the appellant under Central Excise Law when a monthly payment prescribed is not paid by the appellant, but entire payment of a Financial Year is paid subsequently within the specified due date under Rule-6(3A) of CCR - Held that:- In a situation when common inputs are used for making dutiable and exempted Final Products and separate accounts are not maintained, then appellate is required to follow a prescribed procedure. As per this procedure prescribed appellant was required to determine and pay every month of a Financial Year an amount provisionally on the basis of certain parameters of the preceding Financial Year. At the end of the current Financial Year exact amount of inadmissible Cenvat Credit was required to be worked out and paid before 30th June of the Succeeding Financial Year. - It has thus been correctly observed by the first appellant authority in para-10 of the OIA Dated 10/01/2013 that appellant cannot take the shelter of Rule-6(3A)(e) of the CCR to avoid payment of interest. Once a monthly payment mode is prescribed the same is required to be discharged by the appellant. By not doing so interest is payable from that due date of payment till the amount is paid as per the provisions of Section 11 AB (upto 30/03/2011) or Section 11 AA of the Central Excise Act 1944. I find no reason to interfere with the order of the first appellant authority on merits and appeal to that extent is rejected. - Matter remanded back - Decided in favour of assessee.
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