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TMI Blog2014 (2) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 in Final Order No.1224 of 2008. 2. The respondent/assessee are the manufacturers of headlamp assembly and motor vehicles part falling under Central Excise Tariff heading No.8512 and 8705. The assessee has been availing Cenvat Credit on inputs under Cenvat Credit Rules, 2002. During the period from April 2003 to March 2004, the assessee removed inputs as such, on which Cenvat Credit was availed and the credit was not reversed on the date of removal. This lead to a demand being issued to the assessee demanding interest of Rs.67,349/- under Section 11AB of the Central Excise Act, 1944 on the ground that if the duty of excise has not been paid or has been short paid, the person liable to pay duty, has to pay interest on such belated payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T.398 (P&H), wherein it was held that mere deposit of duty before issuance of show cause notice will not suffice for not invoking interest and penalty under Section 11AB and Section 11AC of the Central Excise Act? 5. Heard Mr.P.Mahaadevan, learned Standing Counsel appearing for the Revenue and Mr.S.Jaikumar, learned counsel appearing for the respondent/assessee. 6. It is fairly submitted by learned counsel appearing on either side that the issues raised before this Court in this appeal were not raised before the Tribunal or for that matter before the First Appellate Authority. 7. Learned Counsel appearing for the respondent/assessee also fairly submitted that the First Appellate Authority proceeded on the basis that the duty liability wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty relating to the first fortnight of the month, and the last day of a month for payment of duty relating to the second fortnight of the month or in case of a manufacturer availing exemption by a Notification based on value of clearances in a financial year, for payment of duty relating to the entire month. 10. Sub Rule (1) to Rule 3 of the Cenvat Credit Rules, 2002 would be of relevance in the instant case as the Revenue has placed reliance on such rule to justify the demand of interest. Sub Rule (3) and (4) to Rule 3 of the Cenvat Credit Rules, 2002 reads as follows: "Rule 3 (3)- The CENVAT Credit may be utilised for payment of any duty of excise on any final products or for payment of duty on inputs or capital goods themselves if such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturer of the final products shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in Rule 7." Sub Rule (4) to Rule 3 of the Cenvat Credit Rules, 2002 prior to its substitution states that the inputs or capital goods on which CENVAT credit has been taken, are removed from the factory as such, the manufacturer of the final product shall pay an amount equal to the duty of excise, which is leviable on such goods at the rate applicable to such goods on the date of such removal. 12. Therefore, the expression "on the date of such removal" is referable to the rate applicable to such goods and it cannot be understood to mean that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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