2005 (5) TMI 471

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...., JDR, for the Respondent. [Order]. - The appellants had taken Cenvat credit of Basic Customs Duty, Countervailing Duty, and Special Additional Customs Duty, totalling to Rs. 8,13,752/-, on their input imported and cleared under Bill of Entry dated 16-3-2001. This credit was taken on 7-12-2001. The Department found that they had illegally taken Cenvat credit of Basic Customs Duty and Special....

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....y of Rs. 50,000/- under Rule 25 of the Central Excise Rules, 2002 on account of their carelessness in availing Cenvat credit. The appellate authority also sustained the Section 11AB demand of interest on duty. The present appeal of the party is against this interest and the Rule 25 penalty. 2Heard both sides. Ld. Counsel for the appellants submits that the order of the original authority droppi....

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....ants, no interest was leviable on such duty. In this context, it is submitted that the payment had been voluntarily made pursuant to the Department's direction contained in the show-cause notice. 3Ld. DR, in regard to interest on duty, submits that the proviso to Section 11AB(1) cited by the ld. Counsel is not applicable to the facts of this case. As regards the Rule 25 penalty, the findings re....