9911796707
TMI Blog2014 (8) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... n, installation and commissioning service" for the period from December 2005 to March 2006, appropriated equal amount already paid towards the demand, raised demand of interest thereon under section 11AB of the Central Excise Act and imposed a penalty of Rs. 2,15,526 under rule 15 of the Cenvat Credit Rules, 2004. There is no representation for the appellant today despite notice, nor any request for adjournment. I have perused the records and heard the learned Superintendent (Authorised Representative). The appellant was engaged in the manufacture of conveyors and parts thereof and were availing of and utilizing Cenvat credit for payment of duty of excise thereon during the aforesaid period. They had registration with the Department as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his dispute that the original authority took the aforesaid decision which, in due course, came to be affirmed by the Commissioner (Appeals). On a perusal of the grounds of appeal, I find that the challenge is against the demand of interest on duty under section 11AB of the Central Excise Act and the imposition of penalty under rule 15/section 11AC. It is submitted that no interest could have been demanded under section 11AB of the Central Excise Act and that any such demand could have been made only under section 75 of the Finance Act, 1994. Further, it is submitted that, as the duty was paid before issue of show-cause notice, no penalty could have been imposed under section 11AC of the Central Excise Act. "No positive evidence" was adduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the invocation of extended period of limitation is not under challenge in the present appeal and, therefore, there could be no valid challenge to invocation of section 11AC of the Central Excise Act. As regards interest on duty, it is submitted that section 11AB of the Central Excise Act was correctly invoked in this case wherein Cenvat credit was wrongly availed of and utilized for payment of duty of excise on final product thereby creating a situation of short-payment of duty of excise on final product. It was the short-paid duty which was paid by the assessee before show-cause notice but without interest. This interest has been paid by the assessee after the impugned order was passed and the same is interest on duty of excise, which cann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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