2017 (1) TMI 545

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..... of inputs and capital goods separately is not legally sustainable. The disputed amount has been put into use at least in some of the months by the appellant which will necessarily result in short payment of duty attracting the interest liability - Original Authority is directed to recalculate the interest liability taking into account the combined balance available with the appellant during t .....

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..... lant. He confirmed the interest liability on the said demand. On appeal, the Commissioner (Appeals) vide his order dated 15-4-2008 upheld the demand for interest. 2. Ld. Counsel for the appellant submitted that the credit availed relates to the period August, 1999 to December, 2002. They have reversed the said credit amount on 17-12-2004 based upon their own calculation. The Original Authority .....

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..... in PLA account cannot be considered to arrive at the balance. 4. Heard both the sides and perused the appeal records. 5. Admittedly, when the Cenvat credit are availed on the inputs or capital goods, the credits get merged and as such, lose their identity. In such situation, considering the credit balance of inputs and capital goods separately is not legally sustainable. Regarding appellant .....

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