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M/s Welspun India Limited Versus C.C.E. & S.T. -Vapi

2015 (9) TMI 566 - CESTAT AHMEDABAD

Demand of interest u/s 11AB - interest on reversal amount of cenvat credit - whether interest is payable by the appellant under Central Excise Law when a monthly payment prescribed is not paid by the appellant, but entire payment of a Financial Year is paid subsequently within the specified due date under Rule-6(3A) of CCR - Held that:- In a situation when common inputs are used for making dutiable and exempted Final Products and separate accounts are not maintained, then appellate is required t .....

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Dated 10/01/2013 that appellant cannot take the shelter of Rule-6(3A)(e) of the CCR to avoid payment of interest. Once a monthly payment mode is prescribed the same is required to be discharged by the appellant. By not doing so interest is payable from that due date of payment till the amount is paid as per the provisions of Section 11 AB (upto 30/03/2011) or Section 11 AA of the Central Excise Act 1944. I find no reason to interfere with the order of the first appellant authority on merits and .....

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12-2013 Dated 18/09/2012 passed by the Adjudicating Authority. 2) Shri S. Suriyanarayan (Advocate) appearing on behalf of the appellant argued that appellant is engaged in the manufacture of both dutiable and exempted goods and was also availing the benefit credit on inputs under Cenvat Credit Rules 2004 [CCR]. That appellant was excercising option as per Rule 6(3A)(b) of CCR as separated accounts for input Furnace Oil, used in the manufacture of exempted and dutiable final products, were not ma .....

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red to be reversed under Rule 6(3A)(b) of CCR. It was the case of the learned Advocate that no interest is payable under Rule-6(3A)(e) and (h) of CCR if the Cenvat Credit proportionate to exempted goods is reversed by 30th June of a particular Financial Year. 2.1) It is also the case of the appellant that demand is issued beyond the normal period of limitation when no extended period has been invoked in the Show Cause Notice. Appellant relied upon the following Case Laws to argue that demand of .....

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a) of their appeal filed before the first appellant authority. 3) Shri Govind Jha (Authorised Representative) on the other hand argued that as per the provisions of Rule-6(3A) a provisional amount was required to be reversed each month on the basis of previous years of consumption of Furnace Oil used in the manufacture of exempted goods. It was his case that monthly reversal/payments were not made by the appellant and payment of interest has been correctly confirmed as per the findings of first .....

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appellant, but entire payment of a Financial Year is paid subsequently within the specified due date under Rule-6(3A) of CCR. It is observed from the provisions of Rule-6(3A) of the CCR that in a situation when common inputs are used for making dutiable and exempted Final Products and separate accounts are not maintained, then appellate is required to follow a prescribed procedure. As per this procedure prescribed appellant was required to determine and pay every month of a Financial Year an am .....

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