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TMI Blog2017 (5) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the manufacture of light, medium and heavy commercial vehicles falling under Chapter 87 of Central Excise Tariff. The appellant availed credit of inputs, i.e raw material which were sent to job worker under Rule 4(5)(a) of the Cenvat Credit Rules, 2004. (ii) The raw material sent to job worker was not received back by the appellant in their factory within 180 days, which is the period prescribed within which input has to come. If the raw material sent is not received back within 180 days, the manufacturer assessee is required to reverse the Cenvat credit taken for the said raw material, which appellant did not do. (iii) After initial reversal of Cenvat credit, the assessee later took Cenvat credit for the said goods, when they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... automatically. The appellant has failed to honour the liability of interest which accrued automatically for the period, when they crossed the limit of 180 days' period within which the goods are required to be returned to principal manufacturer, who is the appellant. The liability of interest is limited to the amount of Cenvat credit only for the period beyond 180 days, when goods were not returned and credit continued in the assessee's books of accounts. Hon'ble Supreme Court in the case of Commissioner of Trade Tax, Lucknow Vs. Kanhai Ram Thekedar - 2005 (185) ELT 3 (SC) has held that liability of interest is automatic on the assessee. In this regard, Hon'ble Supreme Court, though the decision mainly deals with sales tax it is applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest is automatic and no separate notice of demand was required to be served in that respect. 17. Thus, we are of the opinion that the High Court was not justified for deleting the interest levied by the authorities on the ground that no notice was served. ................................." (Emphasis supplied) 8. In the light of discussion and the observations of Hon'ble Apex Court (supra) only the liability of interest for the period exceeding the 180 days' limit when Cenvat credit continued in the assessee's account is sustained and for requantification of said liability of interest, the matter is remanded to the original adjudicating authority, who shall adjudicate the same within four months of issue of this Order and after giving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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