2001 (7) TMI 571

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....dent. [Order per : P.S. Bajaj, Member (J)]. - This appeal has been filed by the appellant against the impugned order-in-appeal, dated 23/29-11-2000 vide which the Commissioner (Appeals) has upheld the order-in-original, dated 16-7-1999 of the Dy. Commissioner, Central Excise who confirmed the demand of duty of Rs. 916919/- under Rule 57-I of the Central Excise Rules and imposed penalty of Rs. 1....

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....ued to the appellants for recovery of the amount in question availed by them of Modvat credit. They in their reply, reiterated the correctness of the invoices and availment of the Modvat credit on those basis rightly. But the Dy. Commissioner did not accept their version and confirmed the demand of Rs. 916919/- under Rule 57-I of the Rules and imposed penalty of Rs. 1 lakh on them, through order-i....

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....erpreted as non-payment of appropriate duty on the inputs. The interest could not be taken to be a part of the duty, it was only by way of penalty which the manufacturers became liable to pay, for having defaulted in discharging the appropriate duty on the inputs, in time. Therefore, omission on their part to pay interest on the delayed payment of the appropriate duty on the inputs, could not be m....