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2014 (11) TMI 496 - MADRAS HIGH COURTLevy of interest - tribunal deleted the interest demand - period from 1-4-2001 to 31-1-2002 - Section 11AB of Central Excise Act, 1944, which stands amended with effect from 11-5-2001 - Held that:- liability to pay interest would arise in case where there has been a delayed payment of duty as determined under Section 11A(2) of the Act, which was with an intention to evade payment of duty and in such circumstances, the assessee would be liable to pay interest. we have held that there was no intention on the part of the assessee to evade payment of duty and there was a dispute as regards the classification of the product. Therefore, the Tribunal was justified in deleting the interest. Even though interest on the duty demanded is statutory, yet when the statute requires the stated conditions as referred to above, the Tribunal rightly concluded that interest was not chargeable on the facts of the case. - Decided in favor of assessee. Eligibility to avail Modvat Credit - at the relevant point of time, the assessee was not registered with the Department - Held that:- At the relevant point of time, the assessee was not registered with the Department and in fact, it subsequently obtained registration from the Department and therefore, if at all the assessee is entitled to any credit it would accrue only subsequent to the date of the registration with the Department. Even though the assessee claimed exemption on the ground that they had subsequently registered with the Department, as regards the liability as found in the order of adjudication as well as in the order of the Tribunal, we do not find any justifiable ground to accept the plea of the assessee based on the exemption Notification alone that the registration being not a mandatory one, the assessee would be entitled to the benefit of Modvat credit. - Decided against the assessee.
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