9911796707
TMI Blog2014 (8) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the appellant has reversed the credit, though belatedly, in respect of the inputs alleged to have been used in the manufacture of exempted product. There is no doubt that they have done the reversal but they have paid interest @ 13%, which was the prevalent rate at such time. As per the provisions of Finance Act, 2010 the reversal has to be done along with the interest liability @ 24% per annum from the due date of reversal till the actual date of reversal of credit. To that extent, the contention of the Revenue that interest liability should be discharged @ 24% per annum is sustainable. Verification of the quantum of credit - Held that:- If the credit has not been reversed, the same was ordered to be done within a period of four wee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner of Central Excise, Belapur. Vide the impugned order, the learned adjudicating authority has confirmed a duty demand of ₹ 3,55,43,913/- being the amount payable @ 10% of the value of the exempted products during the period September, 2007 to August, 2008 and another demand of ₹ 2,15,01,837/- being amount payable @ 10% of the value of the exempted products for the period September, 2008 to March, 2009. He has also imposed a penalty of ₹ 1 crore on the appellant apart from interest on the duty demand confirmed. 2. The appellant M/s Deepak Fertilizers Petrochemicals Corpn. Ltd., Raigad are manufacturers of fertilizers. They also manufacture other chemicals such as ammonia, ammonium nitrate, nitric acid, men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Inasmuch as they have reversed the credit along with interest prior to enactment of Finance Act, 2010, the interest liability discharged by them @13% is prevalent at the relevant time is correct in law and they are not required to pay any differential interest. It is his contention that since August, 2009 they have been reversing the credit every month and, therefore, they have complied with the requirement of law. Therefore, the impugned demands are not sustainable. He further submits hat for the period 2009-10 and 2010-11, the adjudicating authority himself has dropped the demand. In view of the above, he pleads for grant of stay and setting aside the impugned order. 4. Learned Commissioner (AR) appearing for the Revenue, on the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be disposed of at this stage. Accordingly, after dispensing with the requirement of pre-deposit, we take up the appeal itself for consideration and disposal. 5.1 Vide Finance Act, 2010, the law was retrospectively amended for providing for reversal of credit attributable to inputs used in the manufacture of exempted goods and if reversal was done along with interest for such delayed reversal, the provisions for demanding amount @ 10% of the value of the exempted goods would not apply. In the present case, the appellant has reversed the credit, though belatedly, in respect of the inputs alleged to have been used in the manufacture of exempted product. There is no doubt that they have done the reversal but they have paid interest @ 13%, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin a period of four weeks from the date of receipt of communication. The said ratio applies to the facts of the present case also. Even though, the appellant has not filed any application as stipulated in the Finance Act, 2010 in the present case, inasmuch as they have reversed the credit of duty paid on naphtha used in the manufacture of exempted goods, the same benefit should be granted to the appellant subject to terms and condition prescribed thereunder. It is an admitted position that the appellant as reversed the credit. The appellant is directed to discharge interest liability @ 24% per annum from the due date of reversal of credit to the actual date of reversal done by them in accordance with law. The applicant is directed to pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
