9911796707
TMI Blog2017 (2) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,23,44,335/- involved in the clearances of exempted goods without reversing an amount 10% / 5% for the period April, 2005 to September 2009 along with interest and also proposal for imposing penalty. In adjudication, lower authority has confirmed the proposals in show cause notice i.e. duty demand, interest and equal amount of penalty. Aggrieved by the said order, the appellant has filed appeal. 3. Today, when the matter came up for hearing, on behalf of the appellant, Shri Narayana Swamy Naidu submitted that after the issue of show cause notice, and consequent to Sections 69 and 73 of the Finance Act, 2010, Trade Notice No.25/2010 dt. 16-09-2010 conveyed the procedure to resolve the disputes with the department with regard to payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e impugned order only on the grounds that they have paid interest beyond stipulated time of 07-11-2010 and also that there was delay in filing the application on 23-12-2010. Ld. Advocate contends that there was no specific provision in the Trade Notice to pay interest within stipulated time as in the case of amount of cenvat credit availed on ineligible inputs. 4. On the other handy Ld. AR reiterates the correctness of the Order-in-Original. 5. After hearing both sides and going through the records, the following facts emerge - (a) Audit of appellant's records was carried out in August 2009 when it appeared to department that while clearing the exempted goods, appellants were not reversing 10% of value of exempted goods (5% from July ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner of Central Excise with documentary evidence along with Certificate from a Chartered Accountant or Cost Accountant, certifying the amount of input credit attributable on or before 7.9.2010. On receipt of such application, Commissioner of Central Excise was required to verify the correctness of the amount paid within a period of two months from the date of receipt of application and, in case, the amount so paid is found to be less than the amount, he shall call upon the applicant to pay the differential amount which shall be paid within a period of 10 days from the date of communication from the Commissioner in this regard. Relevant portion of Trade Notice No.25/2010 (C. EX) dt. 16.9.2010 is reproduced below for ready reference: "2. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lubricants & Fuels was Rs. 34,58,810/- (ii) the amount of cenvat credit to be reversed on common inputs used for exempted final products was Rs. 23,06,122/- (iii) they have reversed an amount of Rs. 23,06,207/- as per record in Form RG 23A (Part-II), vide entry Sl.No.88 on Page No. 11 dated 02.11.2010. (iv) they have reversed an excess amount of credit of Rs. 85/- (v) total interest payable due to delay in reversal of admissible cenvat credit availed on fuels & lubricants worked out to Rs. 18,69,311/- for the period from 01.04.2005 till November 2010 (i.e. the month in which inadmissible credit was reversed by them) and (vi) based on the certificate furnished by M/s. SS Zanwar & Associates, Cost Accountants, an amount of Rs. 18,69,311/- was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter was referred to the Jurisdictional Deputy Commissioner for verification of amount of credit attributable to the inputs used in the manufacture of exempted goods. The Jurisdictional Deputy Commissioner vide letter C.No.V/15/22/2009 dated 23.2.2011 has verified the inadmissible credits revered and certified that there are no further dues from the assessee and also agreed with the correctness of the payments made by the assessee with regard to the interest on delayed reversal of inadmissible credits availed. However, I find that though M/s. MIDHANI has reversed the credit attributable to inputs used in the manufacture of exempted goods with, six months from the date on which the Finance Bill got the assent of the President of India, the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act,2010 cannot be denied to the appellant only on the grounds that there was delay in filing the application and also that interest payable on the amounts reversed was paid only on 23-2-2010. In the event, that portion of the impugned order confirming the demand of Rs. 72,23,44,335/- is set aside and the demand is restricted to as verified and found correct by the jurisdictional Deputy Commissioner, and which amount has already been paid by the appellant. 8. Interest on the said amount of will definitely also be payable under Rule 14 of the Cenvat Credit Rules, 2004 read with Section 11AB of the Central Excise Act, 1944. Amount of paid by appellant towards such interest liability has also been appropriated in para-16 (b) of the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
