2018 (5) TMI 1618

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....om products, connectors and accessories etc. falling under Chapter 85 of the CETA, 1985. The Department conducted audit on the appellant for the period July 2013 to April 2014 and raised the objection that the appellant has wrongly availed the CENVAT credit amounting to Rs. 9,80,042/-. Pursuant to the audit objection, the appellant paid Rs. 9,80,042/- along with interest of Rs. 65,730/- on 18/08/2014 and with regard to CENVAT credit availment of customs cess, the appellant paid the education cess amounting to Rs. 18,248/- and Secondary and Higher Education cess amounting to Rs. 9, 125/- along with interest of Rs. 3,402/- on 18/08/2014. Thereafter a show-cause notice dt. 23/05/2016 was issued to the appellant demanding the irregularly availe....

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....the appellant treated that there has been no suppression of facts and the payment of duty and interest was made as soon as it was observed during the audit. He further submitted that as soon as the objection was raised during the audit, the appellant paid the duty along with interest much before the issue of show-cause notice, Therefore in view of Section 11A(2), the Revenue should not have issued the notice. In support of his submission that there was no suppression on the part of the appellant, he relied upon the decision of the Hon'ble Apex Court in the case of Uniworth Textiles Vs. CCE, Raipur [2013(288) ELT 161 (SC)] wherein the Hon'ble court in para 12 has observed as under:- 12.   We have heard both sides, Mr. R.P.....

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....partment raised the objection that the appellant has wrongly availed the CENVAT credit and the same was paid immediately by the appellant along with interest. Since the duty was paid along with interest before issue of show-cause notice, the appellant is entitled to the benefit of Section 11A(2) whereby it is provided that if the duty is paid along with interest, then the Department should not issue the show-cause notice unless there is a fraud or suppression or willful  misstatement. In the present case, the Department has not been able to establish that there was a wilful misdeclaration with intent to evade payment of duty. Further I find that in the following decisions, it has been held that if the duty is paid along with interest, ....