2017 (1) TMI 1850

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....re engaged in the manufacture of excisable goods falling under Chapter 38 of CETA, 1985. The appellants had reversed CENVAT credit involved on the inputs which were used in the manufacture of pharmaceutical products, later on expiry of shelf life, the said finished goods were allowed to be destructed on remission of duty involved on such finished goods. A show cause notice was issued to them on 05.12.2012 for recovery of interest of Rs. 96,030/- on the reversed CENVAT credit amount. On adjudication, the demand was confirmed. The appellant unsuccessfully filed appeal before the Commissioner (Appeals), hence, the present appeal. 4. The Ld. Consultant Shri M. A. Patel, submitted that the inputs have been used in the manufacture of various p....

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....5C of CCR, 2004 reads as follows:- "Where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the CENVAT credit taken on the inputs used in the manufacture or production of said goods and the CENVAT credit taken on input services used in or in relation to the manufacture or production of said goods shall be reversed." 7. On plain reading of the said provision, I do not find any stipulated therein, requiring the assessee to reverse the interest on the amount of CENVAT credit availed on the inputs that were used in manufacture of finished goods allowed to be destroyed after permitting remission of duty under Rule 21 of Central Excise R....