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of <h1>CESTAT dismisses appeal over reversal of credit, demands interest on cleared input.</h1> <h3>BALAJI LOHA PVT. LTD. Versus COMMISSIONER OF CENTRAL EXCISE, RAIPUR</h3> The appeal was dismissed by CESTAT NEW DELHI as the appellant's practice of reversing credit on the last day of the month was considered unjustified in a ... Demand of interest - reversal of inputs as such - Modus operandi to deffer the payment of duty in cash - Held that:- The reason why the appellant was following the aforesaid modus operandi does not appeal to commonsense to appreciate. Bona fide of such action has become questionable. Inputs when enter into the factory premises, those are meant for use in manufacture. Upon such entry, credit is availed by a manufacturer. But without using those inputs, when those are cleared as such, credit of duty taken on such duty was reversible on the date of clearance. If the inputs entering into premises of the manufacturer vanishes on the next day by clearance as such, certainly revenue suffers for the entire month. Therefore, demand of interest was justified. - Decided against assessee. The case involved Cenvat credit on input being cleared without paying duty, leading to a demand for interest by the Revenue. The appellant's modus operandi of reversing credit on the last day of the month was deemed unjustified, and the appeal was dismissed by the CESTAT NEW DELHI.
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