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TMI Blog2009 (12) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... excessive. - E/2810 and 2813/2007 - 1490-1491/2009-SM(BR)(PB), - Dated:- 1-12-2009 - Shri M. Veeraiyan, Member (T) Cross Objection Nos. E/CO/19 and 26/2008 Shri R.K. Saini, DR, for the Appellant. Shri O.P. Ojha, Consultant, for the Respondent. [Order (Oral)]. - Appeal No. E/2810/07 is against the order of the Commissioner (Appeals) No. 156/CE/ALLD/2007 dated 27-7-2007. Cross-Objection No. 19/08 is connected to this appeal. 1.2 Appeal No. E/2813/07 is against the order of the Commissioner (Appeals) No. 160/CE/ALLD/2007 dated 20-8-07. Cross-Objection No. E/28/08 is connected to this appeal. 1.3 The orders of the Commissioner (Appeals) dated 27-7-07 and 20-8-07 arise out of the same order in original No. 113-Dem/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the party. In effect, the demand of interest as well as imposition of penalty of Rs. 10,000/- stand set aside. 4. Learned DR submits that the party has not acted bona fidely in bringing back the goods to the factory for reprocessing after declaring that the goods were not fit for sale. At any rate, substantial quantity of the goods returned have not been reprocessed at all. Therefore, the credit taken under Rule 16 was not justified. He also reiterated the grounds of the appeal in relation to the imposition of penalty equal to the interest leviable on the credit illegally taken. 5. Learned Consultant for the respondents submits that the goods were not marketable in the condition in which they were returned to the factory. Earn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere reprocessed and cleared on payment of duty, there is no irregularity as they are covered under Rule 16 of the Central Excise Rules. In respect of other goods which were brought to factory but subsequently not processed, in my opinion, provisions of Rule 16 cannot be attracted. Therefore, the credit taken was not valid. The respondents have already reversed the credit on 9-4-05. The short issue involved is whether the interest is payable from the date of taking credit till reversal of the credit on 9-4-05. As part of the goods have not been subjected to any process, in respect of such goods, the credit taken being not regular and the credit admittedly has been utilised, interest is payable on such credit. However, it is found that the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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