2010 (9) TMI 443

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....f Act, 1985. During the relevant period, they were availing the benefit of Cenvat Credit scheme. During the scrutiny of ER-1 for the month of June 2005, it was observed that they had sent certain goods for job work to various job workers in terms of provisions of Rule 4(5)(a) of Cenvat Credit Rules, 2004, after availing Modvat Credit of Rs. 2,19,459/-. In terms of said rule, the goods cleared for job work basis are required to be received back within a period of 180 days from the date of clearance. As the goods were not received back within a period of 180 days, the appellants were directed to pay amount of Cenvat Credit availed by them. The appellants, accordingly, debited their Cenvat account on28-6-05. 3. The dispute in the prese....

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....the said goods are not received back within a period of 180 days, the manufacturer is required to pay amount equivalent to Cenvat Credit. Though, said rule does not provide any time limit for reversal of such credit, but the reasonable interpretation of the same would leads one to believe that such reversal is required to be made immediately on expiry of 180 days. 6. The question now arises is that if such reversal is done after expiry of 180 days, whether manufacturer is required to pay interest on the same or not. As is clear, the said Rule 4(5)(a) does not provide any specific mention of payment of interest or the consequence of non-reversal of Cenvat Credit on expiry of 180 days. The interest stand provided in terms of Rule 14 o....