2009 (1) TMI 727

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....ad, SDR, for the Respondent. [Order]. - The appellants took Modvat credit of Additional Customs Duty paid on fuel which was part of the ship imported for breaking. There is no dispute that the credit of CVD taken by the appellants of the duty paid on the fuel was not admissible. The Modvat credit was taken during the month of November 2000, and March, 2001. The final Adjudication order deter....

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....and proceedings. 2. The learned Advocate, Shri A.D. Maru, on behalf of the appellants submits that while both the authorities at the lower level have discussed the provisions of Section 11AA and its applicability for levy of interest, the authorities have not taken into consideration the fact that the appellants had taken the credit of Additional Customs Duty on the fuel, but they had neve....

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....isions in support of his argument that if the credit has not been utilized, interest is not chargeable [2006 (205) E.L.T. 24 (Guj.) = 2008 (12) S.T.R. 101 (Guj.) in the High Court of Gujarat at Ahmedabad, J.M. Panchal and Bankim N. Mehta, JJ. Commissioner of Central Excise v. Gupta Steel, Tax Appeal No. 1145 of 2005, decided on 4-4-2006. The learned S.D.R., on the other hand submits that interest ....

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....at High Court in Gupta's Steel case cited above was not cited before the Commissioner (Appeals) but is directly applicable to the appellants of the present case. The Hon'ble High Court upheld the decision of the Tribunal in that case that the applicants are not liable to pay interest on the amount of credit, which was lying unutilized. Since the Commissioner (Appeals) has not considered the case l....