2007 (11) TMI 155

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....(IFFL) are engaged in the manufacture of flavouring essences and aromatic compounds. They avail Cenvat credit of duty paid on inputs and capital goods. Inspection of records of the assessee revealed that it had destroyed credit availed inputs rejected on the basis of poor quality during the period 2000-2004. IFFL hence reversed Cenvat credit to the tune of Rs. 3,82,441/- by way of debit in PLA on ....

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....r disposal. It is submitted that the original order had been passed without following the principles of natural justice. Relying on case law it is argued that no interest is liable to be paid by the appellants as it had paid the interest due before issue of Show Cause Notice. It is prayed that the demand of interest may be vacated. 3. I find that the assessee had scrapped certain of its inputs ....

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....ture of finished goods. Rule 14 of CCR reads as follows: "Recovery of CENVAT credit wrongly taken or erroneously refunded. — Where the CENVAT credit has been taken or utilized wrongly or has been erroneously refunded, the same along with interest shall be recovered from the manufacturer or the provider of the output service and the provisions of sections 11A and 11AB of the Excise Act or s....