2006 (7) TMI 412

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....R. Bhaghya Devi, SDR, for the Respondent. [Order]. - M/s. Crocodile (India) Pvt. Ltd. has filed the subject appeal against the impugned order wherein the Commissioner has demanded interest of an amount of Rs. 1,24,150/- under Rule 12 of Cenvat Credit Rules for belated reversal of excess credit wrongly taken and imposed a penalty of Rs. 1,50,000/- on the appellant under Rule 13 of Cenvat Cred....

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....during the period of transition from deemed credit regime to the regular Cenvat regime when processed fabrics and garments were brought under the Cenvat scheme w.e.f. 1-4-2003. With effect from 1-4-2003, the appellant was eligible to take credit of duty paid on inputs contained in the finished products, in-process materials and inputs. Despite repeated written requests, the department did not enli....

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....ant in that case as they had only taken the credit as an entry in their records and had not utilised the same. 3. Ld. SDR argued that the case law cited in support of waiving the penalty is not relevant in this case as the penalty was imposed under Rule 13 of the Cenvat Credit Rules, 2002 and not under Section 11AC or Rule 173Q. Ld. SDR also submitted that in Maruti Udyog Ltd. case, the as....

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....y is not imposable in the instant case as the excess credit taken had been reversed prior to the issue of SCN. However, as regards demand of interest is concerned, the argument of the respondents appears to carry considerable force. With effect from 11-5-2001, as per Section 11AB, where any duty has not been levied or has been short-levied or erroneously refunded, the person liable to pay the duty....