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TMI Blog2014 (11) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... edit on duty paid at each stage, then something which is required to be paid or remitted at the final stage could be set off or there is a revenue neutrality. That approach is a permissible approach. If the component of interest is on the tax or duty demanded on the product and if that duty or tax is liable to be set off or adjusted against the credit available at the intermediate stage, then the demand itself was neutralised . Once it was so neutralised and in terms of the judgment of the Hon'ble Supreme Court [2008 (9) TMI 57 - SUPREME COURT], then, one cannot segregate or take out the interest component and call upon the Assessee to pay the sum demanded as interest. The approach of the Tribunal, therefore, in holding that there is a reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges the order passed by the Customs, Excise & Service Tax Appellate Tribunal, West Zonal Bench dated 20 April 2009, submits that there are substantial questions of law. The substantial questions of law have been formulated at pages 6 & 7 of the Appeal Paper-Book. He submits that the interest demanded under Section 11AA of the Central Excise Act 1944 could not have been said to be exempted by virtue of the Notification No.67/95-CE dated 16 March 1995. This Notification only exempts levy of Additional Excise Duty in lieu of Sales Tax under the Goods of Special Importance Act, 1957. The exemption Notification does not cover this interest component and therefore, the Tribunal's order raises substantial questions of law. 5. On the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v) of the Cenvat Rules, 2001. The Assessee paid ₹ 32 ,59,126.23 towards Additional Excise Duty on the printed fabrics manufactured and cleared by them and which sum is higher than the Additional Excise Duty of ₹ 30,80,348 confirmed by the Adjudicating Authority. The duty confirmed is on bleached cotton fabrics manufactured and captively consumed in manufacturing of coated fabrics. Had the Respondent/Assessee paid this Additional Excise Duty, the same could have been available as Cenvat credit. The Assessee could have utilized this Cenvat credit and therefore would be required to pay balance amount of ₹ 1 ,78,788 towards the Additional Excise Duty. The duty now confirmed stands paid in the form of AED paid on the coated fab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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