2010 (4) TMI 589

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....ions for which they have claimed insurance. The in eligible credit they availed was Rs. 5,41,788/- which they reversed during October, 2006. It appeared that they had contravened Rule 3 of the Cenvat Credit Rules, 2004 by availing ineligible credit and they had contravened Rue 14 of the rules by not discharging the liability of interest. Hence, a show cause notice was issued proposing appropriation of the reversed amount and demanding interest on it and penalty under Rule 15(1) of the Rules. The issue was adjudicated by the Addl. Commissioner vide OIO No. 09/2009 dt. 27-1-2009 and the amount reversed was appropriated interest of Rs. 66,766/- was demanded but the proceedings for imposition of penalty was dropped. Aggrieved by such an order, ....

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....mit that interest liability will be applicable and there is no time limit prescribed for effecting recovery of interest under the provisions of the Central Excise Act. He would reiterate the findings of the ld. Commissioner (Appeals). 5. I have considered the submission made at length by both sides and perused the records. It is undisputed that the appellant had taken the credit of the duty paid on inputs on proper documents. It is also undisputed that the entire inputs on which the credit was availed was received in the factory premises. The damaged condition of the input on which they have availed cenvat credit was noticed by the appellant when the containers were brought into factory premises. It is also undisputed that the appellant ....