2013 (10) TMI 404

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....ER : P.R.Chandrasekharan The appeal and stay petitions are directed against Order-in-Original no. 05/RN/COMMR/M-II/2013-14 dated 21/06/2013 passed by the Commissioner of Central Excise, Mumbai-II. 2. M/s Hindustan Petroleum Corporation Ltd., availed CENVAT credit on capital goods of the 100% of the duty paid on the capital goods in the first year itself. As per CENVAT Credit Rules, the appel....

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....l goods for 100% of the duty paid in the first year, which is incorrect. However, the appellant is eligible for taking CENVAT credit of the balance 50% in the subsequent year and, therefore, what is liable to be paid by them is only interest on 50% of the credit taken in advance. As regards the CENVAT credit of Rs.14.42 lakhs, they are not disputing their liability except for an amount of Rs.8900/....

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....n the first year, the appellant is liable to pay interest on such credit wrongly availed from the date of taking of the credit till the end of the financial year. According to the learned counsel, the interest liability would be approximately Rs.3.25 lakhs. Similarly, on the wrongly availed credit of Rs.14.42 lakhs, the interest liability would be approximately Rs. 3 lakhs. 6. Accordingly, we d....