TMI Blog2011 (8) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... because the assessee paid duty subsequent to the date even though the appellants are entitled for credit for such payment of duty that does not result in revenue neutrality. As such, payment of duty after the last due date for the same does not wipe out the liability to pay interest. Being so, unless it is shown that at the time of payment, the entire duty amount along with interest stood paid, the question of application of revenue neutrality cannot arise. In none of the decisions sought to be relied upon this aspect has been considered. Merely because the principle is stated to have been applicable that itself does not amount to laying down the law. - Appellant directed to pre-deposit 60%. - E/3345 and 3359/2010 - 813-814/2011-EX(PB) - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the second matter essentially relates to the claim of differential duty paid in excess in the month of April 2006 and March 2006 towards short-payment for the period April 2006 to September 2006. 5. In both the matters, there is also dispute about non-applicability of the principle of unjust enrichment. It is also sought to be contended that the excess duty paid by the appellant being entitled for availing the credit and the payment of duty is by one unit whereas the availment of the credit is by another unit of the same appellants, the entire process is actually revenue neutrality. Reliance is sought to be placed in the decision of the Hon ble Bombay High Court in the matter of C.C.E., Nagpur v. Ispat Industries Ltd. reported in 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed fact that the duty amount was not paid on the due date in relation to the period for which the authority had found short-payment essentially because there was subsequent payment of the said amount, that cannot ipso facto result in revenue neutrality, merely because the appellants are entitled to avail credit in respect of the duty paid. Right to claim arises only after payment of duty and not prior thereto. Being so, for the period the duty remains to be paid, obviously, interest accrues in favour of Revenue. Hence merely because the assessee paid duty subsequent to the date even though the appellants are entitled for credit for such payment of duty that does not result in revenue neutrality. As such, payment of duty after the last due d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same can be of no help to the appellants. 8. The Apex Court in Textile Corporation, Marathwada Ltd. case had merely observed that Admittedly the assessee has paid duty at final stage. If assessee has to pay the excise duty at each and every stage of manufacturing, it would be entitled to modvat credit and the whole exercise would be revenue neutral. It nowhere lays down the law to the effect that ignoring the statutory provisions that principle of revenue neutrality should be applied. The Apex Court in Jamshedpur Beverages case had observed It is stated by the counsel appearing for the assessee that the excise duty paid and the modvat credit availed were identical and therefore, consequences of payment of excise duty after availing Mod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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