2013 (10) TMI 617

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.... been considered as inputs. A letter was written to the appellant by the department requiring them to reverse the Modvat credit of Rs. 14,81,635/- on 25.4.1989. The appellant had challenged this liability and the matter reached the Tribunal. The Tribunal vide Order No. 471/1990 dated 6.6.1990 dismissed the appeal filed by the appellant. Therefore, the demand which was pointed out by the Audit party in 1989 came to be confirmed as payable and there was no dispute when the matter reached finality. Thereafter, the appellant paid the amount in the year 1999 but did not pay interest. Therefore, proceedings were initiated which culminated in confirmation of demand for interest for delay in payment by the appellant. 2. Learned counsel on behalf....

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....sidering the representation, if any made by the manufacturer of the assessee on whom notice is served under clause (i), shall determine the amount of such credit to be disallowed (not being in excess of the amount specified in the show cause notice) and thereupon such manufacturer of assessee shall pay the amount equivalent to the credit disallowed, if the credit has been utilized, or shall not utilize the credit thus disallowed. Explanation - Where the service of the notice is stayed by an order of a court of law, the period of such stay shall be excluded from computing the aforesaid period of six months or five years, as the case may be. (2) If any inputs in respect of which credit has been taken are not fully accounted for as havin....