2007 (10) TMI 88 - AT - Central Excise

Credit utilized in excess of what was available in IInd fortnight for the payment of duty for the Ist fortnight of August Interest u/r 49(1) is rightly charged as the goods were cleared without payment of duty Penalty for 2-3 days is set aside as provision of credit introduced w.e.f. 17.8.2000

Summary

The appellants challenged the levy of interest and penalty. Interest was imposed for utilizing Cenvat Credit in excess, leading to goods clearance without duty payment. The interest levy was upheld, but the penalty was set aside based on a Tribunal's order.