2017 (6) TMI 362

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..... for the Respondent ORDER Per Devender Singh The appellants are in appeal against the Order-in-Appeal No. JAL-EXCUS-000-APP-28-16-17 dated 29.07.2016 passed by the Commissioner of Central Excise (Appeals), Chandigarh-II. 2. Brief facts of the case are that the appellants are engaged in the manufacture of Cotton Yarn and Synthetic Yarn falling under Chapter 52 & 55 of the Central Excis....

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....e was no requirement of reversal of credit as the interest is only on the duty demanded and since no duty was demanded, question of interest does not arise. He invited attention to the judgment of this Tribunal in the case of Himachal Futuristic Communications Ltd. vs. C.C.E, Chandigarh-I [Final Order No. A/61395-91396/2016-EX(DB) dated 19.09.2016 in Appeal Nos. E/933/2007 and E/1074/2007-EX(DB)],....

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....ls) and referred to the proviso of Notification No. 30/2004 ibid. 5. Heard both the parties and perused the records. 6.1 After hearing both the parties and examining the records, I find that the short issue in this appeal is whether interest was payable on the amount of cenvat credit which was contained in the inputs used in finished goods and work in progress for the period of 24 days after....

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....erest is claimed. Therefore, it is contended that the payment of interest is now well settled as compensatory in nature, when the duty is payable on a particular date and if it is paid on a subsequent date, the Revenue has to be compensated for the delay in payment of duty. It is for that purpose, the interest is charged. Therefore, the interest payable is compensatory in nature. In the instant ca....