2008 (9) TMI 519

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..... ised or not. Held that – interest will be come payable only in respect of credit wrongly taken and which has been utilized.
Shri M. Veeraiyan, Member (T) REPRESENTED BY : Smt. R. Bhagyadevi, SDR, for the Appellant. Shri N. Viswanathan, Advocate, for the Respondent. [Order]. - This is an appeal by the department against the Order-in-Appeal No. 47/2006 dated 20.04.2006 passed by the Commissioner of Central Excise (Appeals), Chennai. 2. Heard both sides. 3.1 The respondent, a manufacturer of 'nylon multifilament yarn' was availing CENVAT credit on inputs and capital goods and utilizing for payment of excise duty for clearance of the final products. The respondent has also been sending some of the inputs for the purpose of getting the .....

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..... 11.05.2001, the interest becomes payable even in cases of voluntary payment of the duty, whether it is short levied or short paid. She relies on the decision of the Hon'ble High Court of Bombay in the case of Commissioner of Central Excise, Aurangabad vs. Padmashri V.V. Patil S.S.K. Ltd. reported in 2007 (82) RLT 132 (Bom.)=2007 (275) ELT 23 (Bom.). 5. Learned Advocate appearing for the respondent submits that the order of the appellate authority is legally sustainable. He also draws my attention to the grounds of cross-objection filed by him and submits that there was sufficient balance available with the respondent in their CENVAT credit account to reverse the ineligible credit and that there was no pecuniary benefit derived by them. He .....

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..... which have been utilised; (b) In a situation, where the assessee opts for an exemption and consequently adjustment requires to be made on the CENVAT account, it was not a case of credit taken wrongly but adjustment warranted in view of opting for an exemption in such a situation, it would be appropriate that a proper account of stock of the material involved and the credit available is taken. If sufficient credit was available on the date of opting out, the mere fact that the physical debiting took place at a later point of time does not involve any benefit to the assessee and no interest shall be payable. (c) Naturally, there is a time lag involved in quantifying the available stock and determining the amount of credit to be reversed. .....

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