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2019 (1) TMI 819 - AT - Central ExciseInterest on delayed refund - section 11BB of Central Excise Act, 1944 - Refund/restoration of CENVAT credit - Held that:- Though availment of CENVAT credit, in accordance with the Rules, does not require any permission, the restoration of reversed credit cannot but be with approval of the competent authority. The procedure under section 11B of Central Excise Act, 1944 is brought into play for this limited purpose of authorizing the restoration. Mere reference in the provisions of law pertaining to refund will not enable such debit entries to be adorned with the mantle of duty. It is amply clear from section 11B of Central Excise Act, 1944 that the provisions were legislated for grant of refund of incorrectly debited entries in the account current. Consequently, the interest liability under section 11BB of Central Excise Act, 1944 will arise only on refund of duty paid by such debits in account current. Further, Central Excise Act, 1944 crystalizes liability of duty on excisable goods whereas liability under rule 6 of CENVAT Credit Rules, 2004 devolves on those that were not excisable. Therefore, the mechanics of erasing of ineligible credit on inputs cannot, by any stretch, constitute duty for appellant to claim the privileges attendant on payment of duty. The provisions of the statute does not offer room for any ambiguity that restoration of credit in the CENVAT credit account must be compensated with interest even if such restoration is ordered beyond three months from the date of claim for such restoration - appeal dismissed - decided against appellant.
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