TMI Blog2019 (1) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... B of Central Excise Act, 1944 that the provisions were legislated for grant of refund of incorrectly debited entries in the account current. Consequently, the interest liability under section 11BB of Central Excise Act, 1944 will arise only on refund of duty paid by such debits in account current. Further, Central Excise Act, 1944 crystalizes liability of duty on excisable goods whereas liability under rule 6 of CENVAT Credit Rules, 2004 devolves on those that were not excisable. Therefore, the mechanics of erasing of ineligible credit on inputs cannot, by any stretch, constitute duty for appellant to claim the privileges attendant on payment of duty. The provisions of the statute does not offer room for any ambiguity that restoration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d claim. The rejection of claim for interest on the debit in the CENVAT credit account for the period till re-credit is in appeal before the Tribunal. 2. According to Learned Counsel for appellant, the first appellate authority has sought to distinguish between duty that is entitled to interest upon delay in sanction of refund and amount paid under rule 6 of CENVAT Credit Rules 2004 to hold the latter as ineligible even though clause (c) of proviso in section 11 B(2) of Central Excise Act, 1944 is equally applicable to refund of credit of duty paid on excisable goods and further contends that section 11BB also makes it abundantly clear that interest is due on any refund that was kept pending beyond three months from the date of receipt o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of service whereas the refund referred to by Learned Counsel is relatable to inputs. He further contends that the appellant has not been able to establish that any prejudice been caused to them by the temporary withdrawal of credit during the period of dispute. 5. Having considered the rival submissions, and on perusal of the records, it would appear that the appellant seeks to equate discharge of liability through CENVAT credit mechanism with the payment of levy through account current. The mechanics of availment and utilization of CENVAT credit has its genesis in the scheme to neutralize the cascading effects of taxation for which special Rules have been notified. The credit that accumulates is maintained as a pool from which the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 2004 devolves on those that were not excisable. Therefore, the mechanics of erasing of ineligible credit on inputs cannot, by any stretch, constitute duty for appellant to claim the privileges attendant on payment of duty. Proviso in section 11B referred to by Learned Counsel, pertains to the specific circumstances in which the 'Fund' is not to be credited with the amount of refund arising from any special provision in CENVAT Credit Rules 2004. On the other hand, section 11BB of Central Excise Act, 1944 is specific in limiting the applicability of that provision only to duty. The absence of such restriction in a circular, and explanatory communication, cannot overrule the provisions of the statute; it can only be presumed th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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