2010 (6) TMI 238

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..... r the Respondent. [Order] - Respondents are engaged, in the manufacture of fertilizer and for this they were receiving Aromatic Rich Naptha (ARN) and Natural Gasoline Liquid (NGL) without payment of duty. The condition was that the same should be used in the manufacture of dutiable goods. However, when such inputs were used in the manufacture of non-dutiable goods i.e. generation of electricity, .....

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..... r as interest of Rs. 1000/- per day is concerned, Hon'ble Rajasthan High Court in the case of M/s. Lucid Colloids Limited v. UIO - 2006 (200) E.L.T. 377 (Raj.) has already held that Rule 8(3) of Central Excise Rules, 2002, to the extent of providing rate of interest Rs. 1000/- per day or 2%, which ever is higher is ultra vires. Therefore, the demand for interest for Rs. 1000/- per day cannot be su .....

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..... e but a strictly legal interpretation would require that duty payment has to be considered as having been made only when debit is made in the PLA or when TR 6 Challans evidencing payment is submitted. Therefore, Tribunal being creation of statute cannot go beyond the law and therefore payment made by the appellant by TR6 Challans has to be treated as payment of duty and date of credit has to be de .....

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