TMI Blog2019 (2) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... es have totally erred in entertaining such a view while demanding interest without issuance of show cause notice. In the absence of any show cause notice for the recovery of interest the entire demand for interest is unsustainable - appeal allowed - decided in favor of appellant. - Appeal No. ST/1646/2011 - A/31621/2018 - Dated:- 19-12-2018 - Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) And Mr. P.V. SUBBA RAO, MEMBER (TECHNICAL) Shri S. Thirumalai, Advocate for the Appellant. Shri V.R. Pavan Kumar, Superintendent/AR for the Respondent. ORDER Per: M.V. Ravindran 1. This appeal is directed against the Order-in-Appeal No.08/2011 (H-III) dated 28.02.2011. 2. The relevant facts that arise for consideration in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Bench in the case of B. Girijapathi Reddy and Co. [2016 (344) ELT 923], Rashtriya Ispat Nigam Ltd [2018 (5) TMI 869 (CESTAT-HYD)] wherein the Bench followed the ratio of the law laid down by the Hon ble High Court of Andhra Pradesh in the case of Bharath Dynamics Ltd [2016 (331) ELT 182]. It is his submission that appellant having reversed the CENVAT credit, on his own, question of paying any interest does not arise. He also argued on the point that the normal period of limitation will apply and the demand if any, is hit by limitation. He would submit that the appellant who had not been issued any show cause notice by the lower authorities to defend their case, that the majority decision of the Tribunal in the case of Paper Produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aboratories Ltd [2009 (242) ELT 566] has held that show cause notice is not required for demand of the interest once the assesee voluntarily pays back the erroneous rebate. It is his submission that same view has been held in the case of Micro Precision Moulders [2009 (243) ELT 583] and Atul Ltd [2009 (246) ELT 744]. 5. After hearing both sides extensively, the issue that falls for consideration is only regarding the interest from the appellant on the amount of CENVAT credit taken and reversed. 6. We find that in the case in hand, both sides have relied upon various decisions to canvas their case, but fundamentally, the question that arises in the case in hand is whether appellant is required to be issued a show cause notice for the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is an assessment order determining the tax liability, interest would be liable to be recovered since it is consequential to the demand of tax. The said decision nowhere states that in a case where only recovery of interest is involved, no notice is required to be issued. In fact in the said order, it has been categorically held that if the assessment order does not include interest, demand for interest thereafter has to be made within a reasonable period. Therefore, I am unable to agree with the interpretation given by the Hon ble Member (Technical) of the Apex Court s order in the Citedal Fine Pharmaceuticals case. 26.2-28.2.... 29. To conclude, - I agree with the views of Hon ble Member (Technical) that the demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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