TaxTMI 
TaxTMI 
2014 (8) TMI 495
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....mount payable @ 10% of the value of the exempted products during the period September, 2007 to August, 2008 and another demand of Rs. 2,15,01,837/- being amount payable @ 10% of the value of the exempted products for the period September, 2008 to March, 2009. He has also imposed a penalty of Rs. 1 crore on the appellant apart from interest on the duty demand confirmed. 2. The appellant M/s Deepak Fertilizers & Petrochemicals Corpn. Ltd., Raigad are manufacturers of fertilizers. They also manufacture other chemicals such as ammonia, ammonium nitrate, nitric acid, menthol and Iso-propyl alcohol etc. They were using duty paid naphtha as one of the inputs for generation of steam, which is used in the manufacture of dutiable goods as well as ....
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....me is correct in law and they are not required to pay any differential interest. It is his contention that since August, 2009 they have been reversing the credit every month and, therefore, they have complied with the requirement of law. Therefore, the impugned demands are not sustainable. He further submits hat for the period 2009-10 and 2010-11, the adjudicating authority himself has dropped the demand. In view of the above, he pleads for grant of stay and setting aside the impugned order. 4. Learned Commissioner (AR) appearing for the Revenue, on the other hand, contends that though the appellant had reversed the credit for the year 2007-08, this was much after the clearance of the goods and the reversal was made only in Sept, 2009, w....
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...., 2010, the law was retrospectively amended for providing for reversal of credit attributable to inputs used in the manufacture of exempted goods and if reversal was done along with interest for such delayed reversal, the provisions for demanding amount @ 10% of the value of the exempted goods would not apply. In the present case, the appellant has reversed the credit, though belatedly, in respect of the inputs alleged to have been used in the manufacture of exempted product. There is no doubt that they have done the reversal but they have paid interest @ 13%, which was the prevalent rate at such time. As per the provisions of Finance Act, 2010 the reversal has to be done along with the interest liability @ 24% per annum from the due date o....
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....ication as stipulated in the Finance Act, 2010 in the present case, inasmuch as they have reversed the credit of duty paid on naphtha used in the manufacture of exempted goods, the same benefit should be granted to the appellant subject to terms and condition prescribed thereunder. It is an admitted position that the appellant as reversed the credit. The appellant is directed to discharge interest liability @ 24% per annum from the due date of reversal of credit to the actual date of reversal done by them in accordance with law. The applicant is directed to produce a C.A. certificate certifying the credit required to be reversed and the credit actually reversed along with interest thereon. On submission of such certificate, the adjudicating....