2009 (2) TMI 197

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..... Kumaresh, SDR, for the Respondent. [Order]. - The impugned order affirmed demand of interest of Rs. 33,662/- for the delay in reversing Cenvat credit irregularly availed in 2004 and 2005. The only ground taken by the appellants against the demand is that no notice was issued before demanding interest. The Consultant for appellants relies on a decision of a ld. Single Member of this Tribunal i....

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....e Notice, the lower appellate authority relied on the following observations of the Apex Court in the case of Commissioner of Trade Tax, Lucknow v. Kanhai Ram Thekedar [2005 (185) E.L.T. 3 (S.C.)]. "16. In the case of Prahalad Rai & Ors. v. Sales Tax Officer, Meerut & Ors., 1991 Supp. (2) SCC 612, this court had an occasion to consider the payment of interest on arrears of sales tax. In this ca....

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....of interest were held to be contingent on the timing of payment of the duty due in a large number of cases. It was held that penalty or interest was not payable in cases where tax due was paid before issue of Show Cause Notice. However, these decisions have been overruled by the following judgments. (i) CCE, Delhi v. Machino Montell (I) Ltd. - 2006 (202) E.L.T. 398 (P&H) = 2006 (4) S.T.R. 177 (....