2007 (4) TMI 20 - AT - Central Excise

Refund of interest Appellant demand for refund of interest which he paid earlier on belief of delayed payment by way of reversal of Cenvat credit taken on capital goods installed outside their factory Held refund is admissible

Summary

The Appellate Tribunal CESTAT, Mumbai upheld the Commissioner of Central Excise (Appeals) order accepting the respondent's claim for refund of interest of Rs. 3,86,274 due to delayed payment by way of reversal of Cenvat credit of Rs. 22,68,279 taken on capital goods installed outside their factory. The movement of capital goods to job workers for further processing is permissible under Cenvat Credit Rules 2002. Since the reversal of credit took place within the 180 days limit provided in the Rule, no interest is payable. The appeal was rejected.