2017 (12) TMI 756

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.... at the time of departmental audit. Details of interest and penalty are given below:- OIA No. 101/2015 104/2015 105/2015 Interest (Rs.) 1,52,617 1,74,366 1,38,015 Penalty (Rs.) 3,52,424 2,93,356 2,93,279 Total (Rs.) 5,05,041 4,67,722 4,29294 2. The allegation against the appellant is that he has wrongly availed the CENVAT credit and by issuing the show-cause notice, the Department sought the recovery of CENVAT credit availed by the appellant. The original authority after following the due process, confirmed the demand and appropriated the wrongly availed CENVAT credit under Rule 14 of CNEVAT Credit Rules, 2004 read with provisions of Section 11AB and also....

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....ovided under Section 11AB, which was inserted by Act 33 of 1976 Cohich came into effect from 28-9-1996, which reads as under : "Interest on delayed payment of duty. [(1) Where any duty of excise has not been levied or paid or has been short-levied or short paid or erroneously refunded the person who is liable to pay the duty as determined under sub section (2), or has paid the duty under sub-section (2B), of section 11A shall, in addition to the duty, be liable to pay interest at such rate not below [ten per cent] and not exceeding thirty six per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first date of the month succeeding the month in which t....

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....her increased amount of duty,]" 9. It deals with payment of interest on any duty of excise which has not been levied or paid or has been short levied or short paid or erroneously refunded, A person who is liable to pay duty in any one of those cases is liable to pay interest at such rate not below 10% and not exceeding 35% p.a. from the first date of the month succeeding the month in which the duty ought to have been paid under this Act or from the date of such erroneous refund, as the case may be. However, the proviso to said Section makes an exception in cases where no interest shall be payable. 10. The Apex Court in the case of Pratibha processors v. Union of India reported in 1996 (88) E.L.T. 12 (S.C.), explaining the term tax, in....