TMI Blog2008 (5) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... . 120/- utilized in February, 2004, the assessee had not utilized any amount of credit which was not due to them legally - excess credit availed remains an entry in the proforma account and was not utilized – hence interest not chargeable - E/156/2006/MAS - 504/2008 - Dated:- 23-5-2008 - Shri P. Kaithikeyan, Member (T) Shri T. Dhandapani, Authorised Representative., for the Appellant. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower appellate authority affirmed the demand of interest as the Rule 12 of the Cenvat Credit Rules, 2002 (CCR) provided for recovery of credit 'taken' or'utilised' wrongly along with interest. The Commissioner (Appeals) found demand of interest to be in accordance with law. The Commissioner (Appeals) also found that the appellants had availed 50% of the credit prematurely owing to their bona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on another decision of the Tribunal in Tata Motors Ltd. v. CCE, Jamshedpaur [2006 (199) E.L.T. 837 (Tri.-Kolkata)], wherein the Tribunal had vacated demand of interest on the ground that interest could be demanded invoking Rule 57-1(5) only in cases where the credit of duty paid on inputs had been taken with intent to evade payment of duty. 4. Ld. SDR submits that with effect from 11-5-01 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering interest for the delayed payment of any amount of duty. In the instant case, there is no delayed payment of duty or undue accommodation enjoyed by the assessee. Barring an amount of Rs. 120/- the appellants had not utilized any amount of credit which was not due to them legally. The provisions to recover interest are enacted to compensate the exchequer for the delay it suffers in receiving t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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