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TMI Blog2015 (10) TMI 2456X X X X Extracts X X X X X X X X Extracts X X X X ..... for payment of BED and SED - Section 11A of the Act provides for recovery of duties not levied or not paid or short levied or short paid or erroneously refunded. Section 11AB of the Act as it existed at the relevant time mandates payment of interest on delayed payment of duty. The relevant date specified in the provision as 10.9.2004 is for the purpose of determining the period of limitation for issuing show cause notice for recovery under Section 11A of the Act and not for levy of interest under Section 11AB of the Act. The appellant had wrongly utilized AED (GSI) Credit pertaining to period prior to 1.4.2000 in 2003 immediately after amendment to Rule 3(6) of 2002 Rules. Thus, the interest liability under Section 11AB of the Act would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tantial questions of law:- (i) Whether in facts circumstances of present case impugned order is correct as per the prevailing law and facts? (ii) Whether in facts circumstances of present case impugned order is correct when the CENVAT has been utilized by the appellant in accordance with law? (iii) Whether in facts circumstances of present case impugned order is correct when the appellant has paid the entire amount much before their due date? (iv) Whether in facts circumstances of present case impugned order is correct when interest has been demanded from the appellant in contravention of the settled legal principles? (v) Any other question which this Hon'ble High Court may consider fit in the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2002 Rules retrospectively providing that only the AED (GSI) credit accrued after 1.4.2000 could be utilized for payment of BED and SED on the finished products and not the credit accrued prior to 1.4.2000. The adjudicating authority vide order dated 19.4.2005 (Annexure A-4) confirmed the duty demand to the tune of ₹ 8,71,12,812/- along with interest and dropped the penalty proceedings. It also dropped the duty demand of ₹ 4,56,50,988/- for the period post April 2000. The appellant vide receipts dated 31.12.2004 (Annexures A-5 and A-6, respectively) deposited the duty of ₹ 8,71,12,812/-. According to the appellant, out of the total demand, a sum of ₹ 21,38,512/- pertaining to credit on inputs used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified in the Second Schedule, on and from the corresponding date mentioned in column (3) of that Schedule and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said Explanation shall be deemed to be, and to have always been, for all purposes, as validly and effectively, taken or done as if the said Explanation as amended by this subsection had been in force at all material times. (2) and (3) XX XX XX (4) Recovery shall be made of all such CENVAT credit of additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay duty as determined under sub-section (2), or has paid the duty under sub-section 2(B), of section 11A, shall, in addition to the duty, be liable to pay interest at such rate not belong ten per cent and not exceeding thirty six per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first date of the month succeeding the month in which the duty ought to have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2), or sub-section (2B), of section 11A till the date of payment of such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to Rule 3(6) of 2002 Rules. Thus, the interest liability under Section 11AB of the Act would commence from 1st day of the following month when wrong utilization had taken place till the payment of wrongly utilized credit. 8. Further, the appellant had sought to claim benefit of the amendment brought by Section 124 of the Finance Act, 2005. It may be noticed that Section 88 of 2004 Act was amended by adding sub-sections (5) and (6) by Section 124 of the Finance Act, 2005. The relevant clause (v) of sub-section (5) thereof stipulates that interest on the amount of credit utilized for paying CENVAT duty shall be @ 13% per annum for the period beginning on and from the day when each time the amount of credit was utilized and ending on 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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