2006 (7) TMI 33

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of turn hearing application and finding that the issues are covered, we take up the appeal itself for disposal. 1.2 Appellants are a Public Sector Unit & an assessee under the Central Excise Act, 1944 who avail credit of duties paid on inputs & Capital goods received in their factory 1.3 They had imported under EPCG Scheme Capital goods; due to a mistake by the proper officer of Customs who....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ction 1 lAB of the Central Excise Act, 1944. 2.1 When demands of the principal amount of duty have been discharged, as in this case, much before the issue of show cause notice, interest under Section 11AB provisions cannot be upheld, following the Larger Bench decision in the case of CC Ex., Delhi-III v. Machino Montell (I) Ltd. reported in 2004 (168) E.L.T. 466 (Tri-LB). The interest on demand....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....takes credit of duty or money which he knows or which he has reason to believe, is not permissible". The ministerial clerk who took the credit entry on basis of the BE showing the amounts as CV duty due to contributing negligency of the Customs officers cannot be held to have knowledge of EPCG laws & levy which in the Public Sector Burocracy must have been dealt with another employee, when the sen....