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2015 (10) TMI 2584 - CESTAT NEW DELHIDenial of cenvat credit alongwith interest and imposition of penalty - Dises - Held that: - The appellants had taken 100% cenvat credit on Dises instead of 50% of cenvat credit in the same financial year and the balance 50% of cenvat credit are to be taken in any financial year, subsequent to the financial year in which the capital goods are received - the demand of cenvat credit alongwith interest on this issue is justified. Denial of cenvat credit on plastic crates/ bins used for outward transportation of the final product - Held that: - The appellant contended that the value of plastic crates/bins cleared alongwith the final products, was included in the value of the final product. Hence, there is no reason to deny the cenvat credit on this issue. Demand of interest on payment of the differential duty on supplementary invoices raised due to enhancement of the Assessable value with retrospective effect on the excisable goods manufactured and cleared by the appellant - Held that: - I find that this issue is decided by the Hon’ble Supreme Court in the case of CCE, Pune vs. SKF India Ltd., [2009 (7) TMI 6 - SUPREME COURT], where it was held that it is to be noted that the assessee was able to demand from its customers the balance of the higher prices by virtue of retrospective revision of the prices. It, therefore, follows that at the time of sale the goods carried a higher value and those were cleared on short payment of duty. The differential duty was paid only later when the assessee issued supplementary invoices to its customers demanding the balance amounts. Seen thus it was clearly a case of short payment of duty though indeed completely unintended and without any element of deceit etc. The payment of differential duty thus clearly came under sub-section (2B) of section 11A and attracted levy of interest under section 11AB of the Act. The impugned order is modified in so far as demand of cenvat credit alongwith interest is set aside. As the issues involved are interpretation of the provisions of law, penalty is set aside. The appeal field by the appellant is partly allowed - decided partly in favor of assessee.
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