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TMI Blog2008 (10) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order]. - This is an appeal filed by the Revenue. M/s. Kyungshin Industrial Motherson Ltd. (KIML), respondents herein, manufactures 'wiring harness'. They had cleared some of the imported inputs as scrap. After due process of law, the original authority confirmed a demand of Rs. 4,54,961/-, imposed equal amount of penalty under Section 11AC and demanded applicable interest under Section 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Ispat Nigam v. CCE - 2004 (163) E.L.T. A53 (S.C.) In the appeal filed by the Revenue, it is submitted that Final Order No. 980/04 dated 10-11-2004 had been accepted on account of small amount of revenue involved in the said case. 2. The case law cited could not be applied to cases of demand of interest which fell due from 11-5-2001 when Section 11AB was amended. The amendment was to the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that credit was not required to be reversed if any input found suitable during the initial inspection was found unfit during assembly. In CC&CE v. BST Limited [2006 (199) E.L.T. 876 (Tri.Bang)] the Tribunal had relied on a ruling in the case of CCE, Delhi III v. Life Long Appliances Ltd. [2005 (191) E.L.T. 593 (Tri)] wherein it was held that when inputs were rejected during the course of man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n at the assembly stage. Therefore, in the instant case the respondents were not required to reverse any credit. However, immediately on the department pointing out the requirement to reverse the credit, the respondents had promptly reversed the entire Rs. 4,54,961/-. Therefore, penalty and interest were not to be imposed in respect of that amount. This was also the ratio of the various case law r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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