2006 (12) TMI 346

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..... IA No. 42/2005 (H-I) CE dated 31-3-2005 by which the Commissioner among other things has directed that the interest and penalty should be adjusted from the balance amount in RG 23A part II. It is the submission of the Revenue that as per sub-rule (3) of Rule 3 of Cenvat Credit Rules, 2002, Cenvat credit may be utilized for payment of - (a) Any duty of excise on any final product; or (b) .....

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..... r that it is only duty and the Cenvat credit taken on inputs which could be adjusted from the Cenvat credit amount. The Commissioner s direction to adjust the penalty and interest amount from the credits available under RG 23 Part II is contrary to the above noted Rule. The impugned order is modified to this extent by allowing the appeal. (Pronounced and dictated in open court) - - TaxTMI - T .....

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