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TMI Blog2011 (6) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... B/C-IV - Dated:- 28-6-2011 - S.K. GAULE, J. R.G. Seth and B.P. Pereira for the Appearing Parties. ORDER 1. Heard both sides. 2. The assessee as well as Revenue both are in appeal against AGS(130) 16/2009, dated 25-6-2009 and AGS(33)9/2010, dated 15-2-2010. 3. The Revenue is in appeal against the dropping of interest liability by the Commissioner (Appeals) for the period from January 2005 to 18-4-2006. The assessee is in appeal against the confirmation of demand of interest subsequent to 19-4-2006. A common issue is involved in all three appeals, therefore, they are taken up together for disposal. 4. Briefly stated facts of the case are that the assessee is engaged in manufacture of Organic Chemicals falling under Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt through credit and (subsequently through cash cannot be treated as delayed payment) which is only a procedural lapse, which was duly credited by them. Therefore, liability of interest, which has been prescribed on the basis that the appellant retained the money which was due to the Government, is not issue in the case. Therefore, they are not liable for payment of interest and Commissioner (Appeals) has rightly ordered for refund of the interest. On specific query from the Bench regarding the amendment of law with effect from 19-4-2006, learned Counsel stated that explanation of Rule 2(p) was removed. In support of their contention he also placed reliance on the Hon'ble Supreme Court's decision in the case of Eicher Motors Ltd. v. Union ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid by cash is settled in view of the Tribunal's decision in the case of ITC Ltd. (supra) and the same is not disputed by either side. Tribunal in the case of Vulcan Gears (supra) has held that the liability of interest has been prescribed where the appellant retains the money which may be due to be paid to the Government. 8. I find considerable force in the assessee's above contention. Considering the facts of the case, I find that the interest is not payable for the period where the assessee did not retain the money which was due to Government. However, I find that at the initial stage the assessee paid the service tax on GTA services through CENVAT credit and also availed the credit in the same month. The fact is not disputed by eithe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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