2008 (9) TMI 289

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....te, for the Respondent. [Order].- This 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 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n amount of Rs. 7,384/ was demanded towards 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 t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nterest on the ground that various authorities 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 Sectio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....found to have been wrongly availed (and reversed 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 ....