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2016 (7) TMI 1105 - CESTAT MUMBAI

2016 (7) TMI 1105 - CESTAT MUMBAI - TMI - Wrongful use of Cenvat credit - voluntary payment of interest - Refund of the amount encashed through bank guarantee - Held that:- As find that the orders of Settlement Commission has not been challenged by the Revenue and therefore, has become final. The Settlement Commission in its second order has clearly ordered that the interest of ₹ 1,46,827/- payable against the wrongful credit of ₹ 17,31,711/- to be adjusted against the excess duty pa .....

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. RAJU, MEMBER (TECHNICAL) For the Petitioner : Shri.Arun S Sikariya, Authorised person For the Respondent : Shri.R.K.Maji, Asst. Comm. (AR) ORDER PER: RAJU 1. A case was booked against the appellant for wrongful use of Cenvat credit. The appellant approached the Settlement Commission, which vide order dated 21/01/2008 directed as follows: 8.3 We further observe that the applicant has made full and true disclosure of its duty liability and has co-operated in the proceedings before the Bench. The .....

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led. The applicant has derived financial gain by not paying the full duty when it was due. The applicant is therefore liable to pay interest on the belated payment of duty to the extent of ₹ 4,07,779/-. Keeping in view of the cooperation of the applicant during the proceedings, the Bench has been order immunity from interest in excess of @10% per annum. However, the Revenue has shown that the applicant did not have valid Cenvat credit to the extent of ₹ 4,07,779/- out of the total pa .....

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mission and the Revenue. Fine & Penalty: Viewing the matter in totality the Bench order payment of fine of ₹ 75,000/- only in lieu of confiscation of seized goods and grant immunity from fine in excess of this amount and further grant full immunity from penalty to the applicant and the co-applicants. 2. The appellant paid ₹ 44,443/- as interest. Revenue however, approached the Settlement Commission for correction of an error and the Settlement Commission vide order dated 09/07/20 .....

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4,07,779/-. The learned Representative further submitted that the applicant has paid the duty of ₹ 23,05,000/- and interest or Rs..44,000/-. The applicant has paid ₹ 2,13,678/- excess in addition to the duty settled. On specific question raised by the Bench, as to whether the balance interest payable on ₹ 17,31,711/- can be adjusted against the excess duty paid by the applicant, the learned representative urged that the Hon ble Bench has discretion to do so. 9.2As undertaken d .....

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ay interest on ₹ 17,31,711/-. Revenue has reported this to be ₹ 1,47,827/-. The applicant vide their rejoinder dated 04/05/2009, has already expressed willingness to have this additional amount of interest adjusted from the excess amount of ₹ 2,13,678/- paid by them. 10.2 The Bench orders adjustment as above. The balance amount if remaining shall be refunded to the applicant within 30 days from the receipt of this order. 3. Revenue, to recover interest, encashed the bank guaran .....

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