2008 (9) TMI 289

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....is is an appeal filed by the Revenue against the Order-in-Appeal No. 8/2006 dt. 24-1-06 passed by the Commissioner (Appeals), Chennai. M/s. Shasun Chemicals & Drugs Ltd. had cleared a consignment of 18 M.Ts of 'Ibuprofen USP' for export under ARE 1 No. 248/2003-04 dated 30-12-2003. The consignment was cleared for export by the Customs as per the respondent's reply to the Show Cause Notice furnishe....

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....ards the interest for the delayed reversal of excess Modvat credit taken irregularly by the respondent. In the impugned order, the Commissioner (Appeals) vacated the demand for interest working out to a total of Rs. 48,711/-. He found duty liability had arisen only on account of pilferage of consignment and its replacement with sand bags. He also found that the department had come to know all thes....

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....ies supported such a view. However, Revenue has submitted that the decisions relied on by the Commissioner (Appeals) pertained to cases that pertained to the period prior to 11-5-2001 when sub-section 2(B) of Section 11A was introduced in the statute. The ld. Counsel for the respondents countered this submission on the basis that subsection 2(B) of Section 11A applied only to cases of the assessee....

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....sed belatedly). The respondent is not required to pay any interest by way of compensation to the Government. I also find that in Maruti Udyog Ltd v. CCE - 2006 (196) E.L.T. 323 (Tri.-Del.), it was held as under in respect of demand of interest in similar circumstances: "The appellant's grievance is that they had only taken this credit as an entry in their Modvat records and have, in fact, not uti....