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TMI Blog2015 (11) TMI 973X X X X Extracts X X X X X X X X Extracts X X X X ..... GH COURT]. - appellant discharged the service tax liability by way of cenvat credit, which otherwise would have been utilised for payment of dues, and hence the interest liability should be restricted to from the date the liability arose to the date of payment made through cenvat credit. - appellant is liable to pay interest from the date of liability of tax to the date of payment of same through cenvat credit. The same may be quantified by the adjudicating authority. - appellants were not aware of the amended provisions and there was no intention to evade tax. Hence, imposition of equivalent penalty under Section 78 of the Finance Act, 1994 is not warranted and the same is set-aside. - Decided partly in favour of assessee. - Appeal No. : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Cenvat Credit Rules, 2004. A show cause notice dated 17.4.2013 was issued to the appellant. The adjudicating authority vide impugned order-in-original confirmed demand of ₹ 13,91,725/- along with interest and imposed penalty of equal amount under Section 78 of the Finance Act, 1994. A penalty of ₹ 2,000/- was also imposed under Section 77 of the Finance Act, 1994. The appellant filed appeal against the said order-in-original before the Commissioner (Appeals), who by the impugned Order-in-Appeal, rejected the appeal and upheld the order-in-original. Aggrieved by the same, appellants are before us. 2. Heard both sides and perused the records. The learned counsel for the appellant submits that they have initially paid the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80 of the Finance Act, 1994. 3. On the other hand, learned Authorised Representative for the Revenue in addition to reiterating the findings of the lower authorities, submits that appellant had not paid the amount by cash at the time of adjudication of the matter and therefore, there was no way that the original adjudicating authority could have ordered for re-credit of the cenvat credit. However, he fairly concedes that since they have paid the amount in cash subsequently, they can be permitted for re-credit of the same. Learned Authorised Representative strongly contends that as the appellant had not disclosed the details in ST-3 return filed and there was every intention to evade payment of tax and therefore, penalties are rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it by crediting CENVAT account only after actual payment in cash/from P.L. Account is made. 5. As regards the interest, we find force in the submissions of the learned Counsel. The appellant discharged the service tax liability by way of cenvat credit, which otherwise would have been utilised for payment of dues, and hence the interest liability should be restricted to from the date the liability arose to the date of payment made through cenvat credit. This Bench, in the case of Kalp Corporation vs. CCE, Ahmedabad 2013-TIOL-1558-CESTAT-AHM, in Para 9 held as follows:- 9. As regards the interest issue. I find that there is no dispute as to discharge of duty liability by the appellant through the cenvat account which had balance. D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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