2017 (8) TMI 1097

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..... in the case of Commissioner, Central Excise Commissionerate Versus M/s VAE VKN Industries Pvt. Ltd. [2013 (10) TMI 30 - PUNJAB & HARYANA HIGH COURT], where it was held that department had absolutely no jurisdiction to issue SCN after expiry of the period of limitation for interest on the delayed payment for the period - appeal allowed - decided in favor of appellant.
Mr. Devender Singh, Member (Technical) Sh. Amrinder Singh, Advocate for the Appellant Sh. Satyapal, AR for the Respondent ORDER Per : Devender Singh The appellant is in appeal against the impugned order. 2. The brief facts of the case are that the appellant is the manufacturer of Bulk Drugs. After the close of accounting years [January, 2007 to December, 2007 and Janu .....

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..... . 3. Jai Bharat Maruti Ltd. Vs. CCE - 2014 (307) ELT 282 (P&H). 4. Hindustan Insecticides Ltd. Vs. CCE - 2013 (297) ELT 332 (Del.). He also argued that the situation was revenue neutral as the goods were cleared to their sister unit and their sister unit has been availing Cenvat Credit of the duty paid at the time of removal of the goods as also of the duty paid subsequently. He also stated that the issue is covered by their own case decided on the same facts vide this Tribunal's Final Order No. 54220/2015-SM[BR] dt. 20.11.2015. 4. The Ld. AR for the Revenue reiterated the findings in the order of the Ld. Commissioner (Appeals) and pointed out that since it was a case of delayed payment of the duty, the interest was payable by the a .....

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..... v. Union of India and Others, W.P. (C) 14414-15/2006, decided on 18-1-2012 [2012 (281) E.L.T. 507 (Del.)] has also held that period of limitation, unless otherwise stipulated by the statute, which applies to a claim for the principal amount should also apply to the claim for interest thereon." In this case too, the extended period has not been invoked in the show cause notices and the entire demand is beyond the period of limitation. Hence, the demand of interest confirmed vide impugned order is not sustainable. In the absence of demand, the penalty also has to be set aside. 7. Further, I also find that the issue is squarely covered by the decision of this Tribunal in appellant's own case in Ranbaxy Laboratories Ltd. Vs. CCE Final O .....

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