2008 (3) TMI 75

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to their own factory located at Moxi and Nandesari in October 2002 on payment of Central Excise duty.  However, it was found that the assessable value adopted by them was not correct in as much as the same was required to be arrived at 115% of the cost of the production, as certified by the Cost Accountant.  Accordingly, it was seen that the differential duty works out to be Rs.26,90,890....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... sub-section 2B of Section 11A and as such the provisions of Section 11AB would not get attracted.  The Commissioner (Appeals) while relying upon the Tribunal's decision in case of Kalpataru Power Transmission Ltd. Vs. CCE Ahmedabad 2006 (194) ELT 99 (Tri-Mumbai), has held that the wordings of the Section 11AB clearly stipulate that the interest is payable on duty whether the same is determin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rest is payable on the amount paid by the person.  As such, I do not find any merit in the above contention of the learned advocate appearing for the appellant.  4. However, I find that the differential duty required to be paid by the appellant and actually paid by them subsequently was available as modvat credit to their own unit, where such goods were sent.  As such, the entire....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g interest.  However, I find that the Tribunal in case of Gujarat State Fertilizers & Chemicals, 2007 (218) E.L.T. 238 (Tribunal) = 2007 (82) RLT 510 (CESTAT-Ahmedabad), has not accepted the assessee's stand that in as much as the principal amount is in effect not going to the Government, being available as credit to the recipient unit, the interest which is only the appendage to the principa....