2009 (9) TMI 781 - AT - Central Excise

Summary

The appellate tribunal CESTAT New Delhi, under the judgement of Shri Rakesh Kumar, reviewed an appeal regarding the recovery of irregular credit amounting to Rs. 5,07,738 during July, August, and September 1994. The appellant paid the amount in 2004, partly utilizing Cenvat credit and the remaining in cash. The dispute arose when the department demanded interest under Section 11AA on the entire amount. The appellant argued that Section 11AA did not exist at the time of the demand and that interest should only apply to the cash portion paid. The tribunal rejected these arguments, stating that Section 11AA applies to demands confirmed before its introduction in 1995 and that interest is chargeable on the entire unpaid amount. The appeal was dismissed, upholding the interest demand. The tribunal also dismissed the appellant's plea that interest should only apply to the cash portion paid and not the Cenvat credit portion. The impugned order was upheld, and the appeal was dismissed.