2013 (10) TMI 617

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..... r the Respondent: Mr. R. Gurunathan, Addl. Commissioner (AR) ORDER Per B.S.V. MURTHY This appeal is filed on the ground that the appellant had taken MODVAT credit on certain items during the period 1987 to 1988 without following declaration as required during the relevant period and certain inputs had not been considered as inputs. A letter was written to the appellant by the department requir .....

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..... payment of interest does not arise. 3. We have considered the submissions made by the both sides. We have perused the Rule 57-I (1) & (3) which is reproduced below :          (1) (i) Where credit of duty paid on inputs has been taken on account of error, omission or mis-construction, on the part of an officer or a manufacturer, or an assessee, the proper o .....

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..... t as if for the words 'six months', the words 'five years' were substituted.        (iii) The proper officer, after considering the representation, if any made by the manufacturer of the assessee on whom notice is served under clause (i), shall determine the amount of such credit to be disallowed (not being in excess of the amount specified in the show cause notice) .....

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..... n assessee fails to pay the amount determined under sub-rule (1) or sub-rule (2) within three months from the date of receipt of demand notice, he shall pay, in addition to the amount so determined, interest at such rate, as may be fixed, by the Central Board of Excise and Customs under section 11AA of the Act, from the date immediately after the expiry of the said period of three months till the .....

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..... ed has been paid under sub-rule (3), the interest is to be paid. Therefore, even if the duty amount was paid, the provisions of sub-rules (1) & (3) of Rule 57I would be attracted. We find that in earlier proceedings, the appellant had challenged the liability before the Tribunal and the Tribunal dismissed the appeal. The consideration of the statutory provisions reveals that once the duty amount i .....

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