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2008 (8) TMI 317 - AT - Central ExciseInterest on reversal of Cenvat Credit – Manufacturer reversed the credit although not required to do so – Cenvat credit reversed by them since the inputs have been issued for manufacture and were contained in semi-finished goods and there is no dispute on this aspect. As regards interest on Cenvat credit of Rs.19,06,198/- on the inputs lying as such and destroyed in fire accident, in view of the fact that Section 11AB applied to only in cases of non-levy or short levy of excise duty or non-payment of duty by the due date as required under law, Section 11AB is clearly not applicable - interest is not demandable under any of the provisions available and relevant to the facts of the case. Therefore the demand of interest on this amount also cannot be upheld. – Further in respect of unutilized credit the interest is not payable if the credit has not been utilized, the demand for interest on this amount also has to be set aside.
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