2014 (1) TMI 52

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....y used in the manufacture of Superior Kerosene Oil (PDS) and Liquefied Petroleum Gas (Domestic) out of the electricity generated from their captive power plant and has also given the differential duty calculation amounting to Rs. 3,28,62,783/- for the quantity of GT Fuel (GTF). Aromatic Heavy Ends (AHE), Aromatic Heavy Ends-70 (AHE-70) and Mixed Petroleum Gas (MPG) used in generation of electricity consumed in the manufacture of SKO (PDS) and LPG (Domestic), for the period from 1-3-2006 to 24-10-2005 on the basis of heat rate i.e. 1076 Kcal/KWH, arrived at by formula suggested by a Chartered Engineer. 3. The appellant on the basis of aforesaid calculation, have paid the differential duty of Rs. 2,88,46,009/- (Rs. 2,82,80,402/- Cenvat dut....

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.... the jurisdictional Range Superintendent requested the appellant to pay the amount interest for delayed payment of duty. The lower adjudicating authority has vide impugned order confirmed the interest amount of Rs. 11,19,791/- towards the delay payment of duty under Rule 8 of the Central Excise Rules, 2002 read with Section 11AB of the Central Excise Act, 1944. 4. Aggrieved by such an order, appellant preferred an appeal before the first appellate authority. The first appellate authority, after following the principles of natural justice, concurred with the views of the adjudicating authority and upheld the confirmation of interest liability on the appellant. 5. Learned counsel submits that they are in appeal only for the interest lia....

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....nterest liability arises under Section 11AB of the Central Excise Act, 1944. He would also rely upon the decision of the Apex Court in the case of SKF India Limited - 2009 (239) E.L.T. 385 (S.C.) for the same proposition. 7. We have considered the submissions made at length by both sides and perused the record. 8. The undisputed facts are that, appellant herein consumed the intermediate products within the factory premises/refinery. It is also undisputed that if the assessee would have availed the benefit of the provisions of Rule 6(3) of Cenvat Credit Rules, 2004, he need not have discharged the duty liability on the intermediate products. It is also undisputed that whatever duty liability has been discharged by the appellant, he has....