TaxTMI 
TaxTMI 
2010 (4) TMI 738
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.... "(A) Whether, the Tribunal has committed a manifest error of law to direct the Original Authority "to verify as to whether credit was utilized and if not utilized the credit during the material period, no interest will be demanded", whereas the liability to pay interest under Section 11AB of the Central Excise Act, 1944 is automatic till the period the amount is not paid and it does not depend on non-utilization of amount kept/credit taken by manufacturer? (B) Whether the facts and circumstances of the case reduction in penalty under Rule 15 of the CENVAT Credit Rules, 2004 from Rs. 1,00,000/- to Rs. 10,000/- is legally permissible where the duty involved and confirmed was Rs. 9,31,360/- ....
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....nalty of Rs. 1 lac. The Commissioner (Appeals) upheld the adjudication order. 3. Being aggrieved by the order of the Commissioner (Appeals), the Assessee filed second appeal before the Tribunal along with stay application. It appears that in terms of the order of the Tribunal on the stay application, the Assessee has reversed the entire credit. Before the Tribunal, the Assessee contended that the entire credit has been reversed before its utilization and the said amount is still lying in their Cenvat account and a separate application was moved for the refund of the amount which has been paid in excess. The Tribunal by the impugned order has upheld the demand of duty which has been reversed by the Assessee in their Cenvat acco....
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....efunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 11AB of the Excise Act or Sections 73 and 75 of the Finance Act, shall apply mutatis mutandis for effecting such recoveries." Section 11AB of the Act reads as follows : "Section 11AB. Interest on delayed payment of duty. - (1) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay duty as determined under sub-section (2), or has paid the duty under sub-section 2(B), of Section 11A, shall, in addition to the duty, be liable to pay interest at such rate not below ten per cent, and....
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....d to be payable is increased or further increased by the Commissioner (Appeals), the Appellate Tribunal, National Tax Tribunal or, as the case may be, the Court, the interest shall be payable on such increased or further increased amount of duty." 8. Sub-rule (1) of Rule 3 of the CENVAT Rules, 2004 provides that a manufacturer or producer of final products shall be allowed to take credit of the duty of excise paid on any input or capital goods received in the factory of manufacturer of final products. Sub-rule (4) of Rule 3 provides that the CENVAT credit may be utilized for payment of any duty of excise of any final product. The Central Excise Duty is the levy on production but is payable at the time of clearance of the manufacture....
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....he Cenvat account. Such amount credited in the Cenvat account was available for the payment of duty but the same was not utilized for payment of duty and subsequently, the Assessee has reversed the Cenvat Credit entry in the Cenvat account. The Apex Court in the case of Commissioner of Central Excise, Mumbai-I v. Bombay Dyeing & Manufacturing Company Limited, reported in 2007 (215) E.L.T. 3 (S.C.) has held that where before the utilization of the credit amount if the entry is reversed it amounts to not taking credit. Once the credit is reversed before its utilization in the Cenvat account it does not amount to taking of credit. Thus, the provisions of Rule 14 of Cenvat Credit Rules and Section 11AB of the Act are not attracted and neither t....