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2012 (8) TMI 348 - AT - Central ExciseInterest for utilisation of cenvat credit disallowed by the lower authorities and subsequently paid by the appellant through PLA - first appellate authority while directing to take the credit of cenvat on discharging the duty liability through PLA has put an override that such credit cannot be availed till the interest is paid - Held that - Unless the period to which the interest liability arises on the appellant is indicated, there cannot be any calculation to discharge the interest amount, which according to Revenue, the appellant has to pay. Matter is remanded back to the first appellate authority.
Issues: Calculation of interest on cenvat credit disallowed by lower authorities.
In this judgment by the Appellate Tribunal CESTAT, Ahmedabad, the issue revolved around the calculation of interest on cenvat credit disallowed by lower authorities. The appellant filed an application for out of turn hearing of the appeal, which was allowed by the tribunal due to the narrow compass of the issue. The learned counsel argued that the first appellate authority had directed the appellant to take the credit of cenvat on discharging duty liability through PLA but had not specified the period for which the interest had to be calculated. The departmental representative also agreed that the period for which the interest had to be paid was not mentioned. Upon reviewing the records and arguments from both sides, the tribunal found that the first appellate authority had allowed the appeal partly, accepting the appellant's contention of payment of duty through PLA. However, the authority had not specified the period for which the interest liability arises on the appellant. Without clarity on this period, the interest amount to be paid by the appellant could not be calculated. Therefore, the tribunal remanded the matter back to the first appellate authority solely for the purpose of indicating the period for which the interest is payable. The judgment concluded by disposing of the appeal in light of this clarification requirement.
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