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TMI Blog2012 (8) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... N. Kumar and Ravi Malimath, JJ. REPRESENTED BY : Shri B. Pramod, Advocate, for the Appellant. Shri K.S. Ravishankar, Advocate, for the Respondent. [Judgment per : N. Kumar, J.]. This appeal is by the revenue challenging the order passed by the Tribunal [2008 (227) E.L.T. 448 (Tribunal)] which held that the payment of interest is not justified and thus set aside the order passed by the original authority as well as the appellate authority. 2. The assessee M/s. Gokaladas Private Ltd., are the holders of Central Excise registration. They are engaged in the manufacture of readymade garments falling under Chapter 61 of the Central Excise Tariff Act, 1985. They are also availing the benefit of Cenvat credit of duty paid on in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee reserved their wrongly availed Cenvat credit including the duty paid/short payment made/wrong availment of ineligible credit before issue of show cause notice along with interest. Under Section 11-AB of the Central Excise Act, 1944, the payment of interest is very much in conformity with the provisions of law. Therefore they upheld the order of the assessing authority and dismissed the appeal. Aggrieved by the same, the asessee preferred an appeal to the Tribunal. The Tribunal found that even though the assessee had taken the credit they never utilized the same. When the irregularity was pointed out the credit was reversed without demur. Relying on the Judgment of the Tribunal in the case of Page Apparels Private Ltd. v. C.C.E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand of interest is not justified? 4. This Court in the case of Commissioner of Central Excise v. C.C.T. in CEA No. 96/2010, decided on 5-4-2011 [2012 (26) S.T.R. 204 (Kar.)] has held that though the credit of duty is entered in the account books unless the said credit is duly taken to discharge the duty payable the liability to pay interest for the delayed payment would not arise. In the case of wrong availment before the said duty is taken, if the entry is reversed it amounts to not taking the credit at all and therefore when admittedly no duty is payable, the question of payment of interest on the delayed payment of duty would not arise. In that view of the matter, the order passed by the Tribunal is strictly in accordance with law an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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