2007 (5) TMI 444 - AT - Central Excise

Summary

Issues involved: Appeal against order related to payment of interest on delayed duty payment u/s Notification No. 13/2003-C.E. (N.T.)

The Appellate Tribunal CESTAT, Mumbai heard an appeal filed by the revenue against the order of the Commissioner (Appeals), Central Excise, Mumbai. The issue revolved around the payment of interest on delayed duty payment following the removal of inputs/capital goods. The Commissioner, interpreting Notification No. 13/2003-C.E. (N.T.) dated 1-3-03, concluded that no reassessment of duty on inputs/capital goods was required, and only the credit taken needed to be paid without any interest due to the deletion of the time limit clause in the Notification. Consequently, the order-in-original was set aside, leading to the revenue's appeal.

Upon reviewing the impugned order, the Tribunal found it to be legally sound and correctly interpreted the Notification in question. Citing the Tribunal's judgment in the case of CCE, Raigad v. M/s. Savita Polymers Ltd., it was established that monthly duty payment for the removal of cenvatable inputs/capital goods from the factory is permissible. Therefore, based on this precedent, the revenue's appeal was rejected, affirming the Commissioner (Appeals)'s decision.