9911796707
TMI Blog2013 (10) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... puts under Additional Duties of Excise (Goods of Special Importance) Act, 1957, on 19-2-2003 towards payment of Basic Excise Duty (BED) on the goods manufactured by them. The department was of the view that the Cenvat Credit Rules amended vide Notification No. 13/2003-C.E. (N.T.), dated 1-3-2003 provided for utilization of Cenvat credit of duty paid under ADE (GSI) Act and therefore, the appellant could have utilized the said credit only on or after 1-3-2003. Accordingly, a notice was issued and the Cenvat credit utilized on 19-2-2003 amounting to Rs. 14,04,844/- was denied and sought to be recovered under Rule 12 of the Cenvat Credit Rules, 2002 read with Section 11A along with interest thereon and equivalent amount of penalty under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of imposition of any penalty on the appellant or its official would not arise. Accordingly, he pleads for allowing the appeal. 4. The learned Dy. Commissioner (AR) appearing for the Revenue, on the other hand, contends that the amendment to the Cenvat Credit Rules, 2002 was made vide Notification No. 13/2003-C.E., dated 1-3-2003 and the said amendment should be considered only as prospective. Section 88 of the Finance Act, 2004 which granted retrospective effect, amendment carried out also specifies the date of effect to the amendment as from 1-3-2003 and, therefore, the appellant could not have utilized the credit prior to 1-3-2003. However, he fairly concedes that inasmuch as the appellant had sufficient balance in their cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant that even if it is held that the appellant is entitled for utilization of the credit only after 1-3-2003 inasmuch as the appellant has utilized the credit on 19-2-2003, it is a case of advance utilization of credit and, therefore, what the department can recover is only interest on the wrong utilization of credit i.e. from the period from 19-2-2003 to 28-2-2003. Therefore, the appellant would be liable to pay interest on the advance utilization of credit. Accordingly, I hold that the appellant is liable to pay only interest on the utilization of credit amounting to Rs. 14,04,844/- for a period of 10 days from 19-2-2003 to 28-2-2003 at the rate specified under provisions of Section 11AB of the Central Excise Act, 1944 and there is no rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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