2012 (11) TMI 116

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.... month of December 2006. Thereafter, show cause notice was issued proposing to appropriate amount already paid towards the duty and proposing imposition of penalty under Section 11AC of Central Excise Act, 1944 and also proposing demand of interest. In the impugned order the demand for interest was set aside relying upon the decision of Hon'ble Gujarat High Court in the case of Gupta Steels - 2006 (205) E.L.T. 24 (Guj.) = 2008 (12) S.T.R. 101 (Guj.). However, he set aside the penalty proposed under Section 11AC of the Act since he accepted the submission that situation being totally the revenue neutral, there could not have been any intention to evade the duty and further there was no specific allegation in the show cause notice that there ....

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....cause notice on 7-5-2008 i.e. more than one year after the payment was made by the assessee and more than two years after the credit had been taken. Obviously, without invoking extended period demand or appropriation of amount paid could not have been made. It is only because the appellants did not want to challenge the demand, the situation being revenue neutral, the appropriation was made as there was no objection. As regards interest also, the appellant did not have any grievance in view of the decision of the Apex Court. The only issue on which the appellant had serious objection was the penalty under Section 11AC, which was set aside in the impugned order and therefore, respondents had no grievance whatsoever with the decision taken. W....