2015 (9) TMI 1484

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..... f revenue to the Govt. exchequer, the demand of interest cannot be sustained against the appellant since the interest liability is compensatory in character - Decided in favor of the assessee.
Mr. S.K. Mohanty, Member (Judicial) Mr. Dinesh Verma, Advocate, For Appellant Mr. GR Singh, DR, For Respondent ORDER Per Mr. S.K. Mohanty : The brief facts of the case are that during the course of audit of records of the appellant, for the years 2006-07 to 2009-10 the Central Excise Department observed that the appellant had taken full CENVAT credit of duty paid on capital goods, instead of 50% in the year of receipt and remaining in the next financial year. In terms of Rule 4(2a) and 4(2b) of CENVAT Credit Rules, 2004 read with CBEC Circular .....

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..... Engineer (P) Ltd, [2014-TIOL=466-HC-MAD-CX] and the decision of Hon'ble High Court of Karnataka in the case of CCEST, LTU, Bangalore vs. M/s. Bill Forge Pvt. Ltd. [2011-TIOL-799-HC-KAR-CX]. He further relied on the decision of this Tribunal in the case of Indian Oil Corporation Ltd Panipat Refinery Vs.CCE, Gurgaon [Final Order No.A/58435/2013-SM(BR), dated 26.11.2013]. 3. On the other hand, Shri GR Singh, Id. Departmental Representative appearing for the Respondent-Revenue, reiterated the findings recorded in the impugned order and further relied on the judgement of the Hon'ble Supreme Court in the case of Union of India Vs, Ind-Swift Laboratories Ltd. [2011 (265) ELT (SC)] to substantiate his stand that if the CENVAT credit is tak .....

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..... en making payment of excise duty on the excisable product It matures when the excisable product is received from the factory and the stage for payment of excise duty is reached. Actually, the credit is taken, at the time of the removal of the excisable product. It is in the nature of a set off or an adjustment. The assessee uses the credit to make payment of excise duty on excisable product. Instead of paying excise duty, the cenvat credit is utilized, thereby it is adjusted or set off against the duty payable and a debit entry is made in the register. Therefore, this is a procedure whereby the manufacturers can utilise the credit to make payment of duty to discharge his liability. Before utilization of such credit, he entry has been revers .....

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