9911796707
TMI Blog2009 (5) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... o. E/654/05 was filed by the current assessee. After hearing the representative and the advocates for the appellants therein, the Tribunal vide Final order No. 2180 & 2181/2005 dated 9-12-2005 held as under: "On a careful consideration of the matter, we find that the duty has already been paid even before issue of show cause notice. Therefore following ratio of the above judgments, penalty and interest is not leviable. The appellants are eligible 'for refund of the same. The appeal is allowed with consequential relief if any." 3. Aggrieved by such an order, revenue went in appeal before the Hon'ble High court under the provisions of Section 35G/35 H of the Central Excise Act 1944. Hon'ble High Court after considering the submissions dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed machines are removed without payment of duty. Hence it was the contention of the revenue that the assessee is required to reverse the Cenvat credit availed on such inputs used in such repair of machinery. The assessees had reversed the entire amount of Cenvat credit as directed by the lower authorities. The issue involved in this case is whether the assessee is required to pay the interest in respect of the Cenvat credit availed by them prior to 14-5-2001. Learned counsel draws our attention to Annexure-1 of the show cause notice and submits that in respect of the amounts of Cenvat credit of Rs.1,13,567/-, Rs.1,27,835/-, and Rs.16,160/- , these credits were availed prior to the amendment to Section 11 AB of the Central Excise Act 1944. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the penalty sought to be imposed on them is also under rule 57 AH of the C.E. Rules and rule 12 of Cenvat credit rules 2002 read with Section 11AB. Provisions of Section 11AB were amended from 14-5-2001 wherein the intention to evade of payment of duty by way of suppression, fraud collision and mis-statement was dropped. In a nutshell, the effect of the amendment is that if there is a demand of the duty, the assessee is liable to pay interest under ^Section 11 AB. This would cover the issue for the period post 14-5-2001. 8. In view of this we find that for ineligible Cenvat credit availed by the appellant on the inputs prior to 11-5-2001 and used for repairing and reconditioning of machinery, the question of payment of interest does ..... X X X X Extracts X X X X X X X X Extracts X X X X
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