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2017 (11) TMI 824 - CESTAT AHMEDABADValuation - compounded levy scheme - whether the appellant is required to pay interest for availing credit during the period 01.07.2008 to 31.08.2009, reversed on 31.08.2009, when they were governed under the provisions of Section 3A of Central Excise Act, 1944 and the Rules made thereunder? - time limitation - Held that: - the appellant during the relevant period required to discharge duty under Section 3A of Central Excise Act, 1944 and by the relevant provisions notified there under had been debarred from availing cenvat credit and the entire duty was required to be discharged through cash only. In these circumstances, the appellant's argument carries weight that while pursuing their Writ Petition before the Bombay High Court challenging the viries of the levy, recorded the receipt of inputs and availability of the amount of CENVAT credit of the duty paid on such inputs, in their books of accounts, so as to claim the same in the future, if the issue of viries decided in their favour. Thus, mere recording/taking such credit, in the present circumstances, cannot be equated to availing of credit for utilisation and be inferred that the appellant hadavailed the credit with an intention to utilize the same - appellant are required to pay interest for the period during which the credit was lying in their books of records - besides, during the relevant period they were debarred from utilising the credit in discharging their periodical liability under the compounded levy scheme. Thus, levy of interest is neither attracted nor recoverable under Rule 14 of the CCR, 2004. Time limitation - Held that: - the appellant had reversed the entire credit on 31.08.2009 and the demand was issued to them for recovery of interest on 28.09.2010, therefore, the same is barred by limitation, as there is no suppression of fact, nor misdeclaration in the recording the credit in the books of accounts. Appeal allowed - decided in favor of appellant.
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