2016 (7) TMI 1105

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....ngs before the Bench. The Bench accordingly settles the case under sub section (7) of Section 32 F of the Act on the following terms and conditions. Central Excise Duty: The amount of Central Excise duty is settled at Rs. 21,39,490/-. The Bench allows adjustment of utilized credit of Rs. 23,05,000/- as sought by the applicant for treating as payment of duty liability. The applicant has paid more, and nothing remains to be paid on this score. Interest: This is a case of diversion of input on which credit was availed. The applicant has derived financial gain by not paying the full duty when it was due. The applicant is therefore liable to pay interest on the belated payment of duty to the extent of Rs. 4,07,779/-. Keeping in....

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....ise Intelligence, Zonal Unit, Mumbai. The learned Representative of the Revenue briefly narrating the facts of the case submitted that a typographical error has occurred which needs to be rectified in as much as interest has to ordered on amount of Rs. 17,31,711/- and not on Rs. 4,07,779/-. The learned Representative further submitted that the applicant has paid the duty of Rs. 23,05,000/- and interest or Rs..44,000/-. The applicant has paid Rs. 2,13,678/- excess in addition to the duty settled. On specific question raised by the Bench, as to whether the balance interest payable on Rs. 17,31,711/- can be adjusted against the excess duty paid by the applicant, the learned representative urged that the Hon'ble Bench has discretion to do so. ....

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....The Settlement Commission has its order dated 09/07/2008 ordered that the amount of interest should be adjusted against the excess duty paid by them through Cenvat credit. Consequently, the revenue could not have encashed the bank guarantee but adjusted interest against excess duty paid in Cenvat and they should also refunds the amount of interest paid in cash by the appellant. 5. The learned AR argues that there is no provision in law for refund of the Cenvat credit in cash or its adjustment against the liability of interest. The Commissioner (Appeals) has cited various case laws to support his assertion. 6. I have gone through the rival submission. 7. I find that the orders of Settlement Commission has not been challenged by the ....