2010 (1) TMI 351

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....for the Appellant. Shri J.S. Negi, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. - Appellant is engaged in the manufacture of motor vehicles and availed cenvat credit on various inputs received by them. Appellant had sent several capital goods to the job workers without reversing the cenvat credit and on the ground that these capital goods sent out by the appellants for j....

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....duty demanded and interest has also been paid. The dispute now is only in respect of penalty and duty amount, which has been demanded for the first six months from the date of clearances. Learned advocate submits that, according to him the interest is liable to be paid from the date from which the liability arises and in this case the liability arises only after the period of 180 days is over. He ....

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....e by both the sides. Section 11AB is the provision under which interest has been demanded in this case. Section 11AB clearly provides that interest is liable from the first date of month succeeding the month in which the duty ought to have been paid under this act. Therefore, we agree with the learned advocate that duty is liable to be paid only after the period of 180 days are over from the date ....